Honda has decided to produce its next-generation Civic hybrid in Indiana, starting May 2028, to avoid potential U.S. tariffs on Mexican goods, according to Reuters.

The decision marks a shift from Honda’s initial plan to manufacture the Civic in Guanajuato, Mexico, beginning November 2027. This move is a response to the proposed 25% tariffs on goods from Mexico and Canada by the Trump administration, which has prompted manufacturers to reconsider their production strategies.

Those tariffs are expected to go into effect Tuesday.

It has not been confirmed that Honda plans to manufacture the next-gen vehicles at its plant in Greensburg, but the Decatur County facility is the only Honda plant in Indiana.

Reuters said a Honda spokesperson declined to comment on changes to the Civic production plan, stating that the company would continue to consider demand and the business environment in its global production and allocation decisions.

Japan’s second-largest automaker initially chose Mexico due to rising production costs in Indiana and Canada. However, the potential tariffs have made Indiana a more viable option for the Civic hybrid’s production, Reuters says.