Portfolio manager Gabelli brian Sponheimer expresses confidence in the resistance of the vehicle industry in ‘The Claman Countdown’.
Honda is weighing plans to move some of its automobile products from Canada and Mexico to the US while the industry accumulates with President Donald Trump’s latest tariffs.
The purpose of the vehicle is to ensure that 90% of sales in the US are with vehicles manufactured domestically, according to a report by Japanese newspaper Nikkei.
The company is specifically looking at the potential production of its CR-V vehicles and civic vehicles to support this goal, according to the report. Over the next two years, the car manufacturer is seeking to increase US production by 30% by adding more employees and relocation to its US operations for its CR-V and Civic models, the report said.
Fox Business arrived at Honda for comment.
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This is after Trump sets tariffs in the vehicle industry to increase production in the USA administration argued that foreign automobile industries have expanded due to “unfair subsidies and aggressive industrial policies” while ” Production has stalled. “
Honda CR-V SUVs appear on sales in Honda Marin on October 16, 2024, in San Rafael, California. (Justin Sullivan / Getty Images)
Trump, who views tariffs as a way of bringing tax revenue to fund his tax cut plans while revitalizing domestic production, set a 25% fee in April in all imported passenger vehicles. This includes sedans, SUVs, intersections, minivans, load vans and light trucks.
It also hits the main parts of automobiles such as motors, transmissions, parts of electricity and electrical components, although there are “processes to expand tariffs to additional parts if necessary,” the administration said.
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The Trump administration is also planning to impose a special 25% fee on the parts of the vehicle starting May 3. Initially, parts that match the United States-Mexico-Kanada (USMCA) agreement will be exempt from the tariff, although the Department of Commerce is expected to develop a plan to set the fee for non -.BA components.
A Honda HR-V 2024 sits in the draw of a trader on November 27, 2023, in Miami. (Joe Raedle / Getty Images)
While the Trump administration has said tariffs will strengthen the US automobile sector, Car experts have argued that fees It will exacerbate affordability issues regardless of, especially as no vehicle has been built or collected by 100% of the country, according to the National Association of Vehicle Traders.
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Honda is not the only automobile operations potentially changing. Hyundai announced plans in March to invest $ 20 billion to bring production operations to the US
Part of this investment, about $ 5.8 million, will go towards building a steel factory of the next generation that will provide two of its American plants and will hire over 1,400 people. The rest of the money will be separated to expand production in the SH.BA
CEO of Nissan Makoto Uchida suggested that Trump’s tariffs can force the car manufacturer to shift his production outside Mexico.
