Honda May Cancel North American Plant Without USMCA Extension

Executive Vice President Noriya Kaihara announced that Honda Motor Company may cancel plans to build an eighth assembly plant in North America if the USMCA trade deal is not extended. Speaking at a roundtable in Washington, Kaihara explained that the automaker is approaching full production capacity in the region and requires a new facility to meet demand.

Honda aims to have a new plant operational by approximately 2030 and expects to reach a final decision on the investment within the next one to two years. Kaihara stated, "If there is no USMCA agreement in the future, we may have to change our direction."

The potential investment depends on the outcome of ongoing negotiations between the Trump administration, Canada, and Mexico regarding the future of the free trade agreement.