Honda plans to move production of its hybrid Civic from Japan to the United States in response to U.S. President Donald Trump’s tariffs on imported cars.

Production of the five-door hybrid model, which began in February in Saitama Prefecture, will be relocated around June or July to Honda’s plant in Indiana, a spokesperson for the automaker said Wednesday.

“The decision was made based on external factors including the Trump administration’s tariffs,” they said.

While it’s difficult to predict if, when or where Trump’s levies will take effect, Honda is among one of the most exposed foreign brands in the U.S. It imports roughly 160,000 cars from Mexico to the U.S. each year, an executive said in November. The U.S. is also the largest market for Honda, along with other Japanese carmakers Toyota and Nissan.

Honda executives in Mexico have told the government there that there are no changes in the company’s production plan in the country, Mexican Economy Minister Marcelo Ebrard said in a post on X earlier this week. That came after a Nikkei report that said Honda was considering shifting production from Mexico and Canada to the U.S. in response to auto tariffs.

Trump’s mooted tariffs could raise U.S. passenger car prices by more than 14%, according to Christopher Richter, a senior analyst at CLSA Securities Japan. Honda could suffer a 20% drop in operating profit, Richter said, versus a forecast 33% drop for Toyota, 56% for Subaru and 68% for Mazda.

Trump hinted earlier this week that he might temporarily relieve the auto industry from tariffs but didn’t specify how long any potential pause would be. He announced auto tariffs of 25% in late March with tariffs for completed vehicles taking effect April 3 and tariffs for automotive parts set to start 30 days later.