Japanese automaker Honda assured Mexico that it will retain investments in the country, despite concerns over a proposed 20 percent tax on Mexican imports.
“Honda’s facilities in Mexico will be kept as an important part of our global operations and will continue contributing to the Mexican economy,” the company told Forbes Mexico.
A week ago, Honda’s executive vice president, Seiji Kuraishi, said if there was any significant increase in the imports tariff for it to export autos from Mexico to the US the company should “respond in some way.”
A Honda spokesperson said the executive’s quotes were misinterpreted.
Honda is one of the companies Trump disparaged for moving production out of the US to other countries to then export to the US. According to the US president, companies that adopt such a posture will face “tough” imports tariffs.
Trump is trying to ensure the majority of cars sold in the US are produced domestically, as a way to accelerate the creation of jobs and reduce the trade deficit.
Honda produced about 250,000 autos in Mexico last year, out of which it exported half to the US.