Honda to Source Toyota Batteries for Hybrid Cars Amid Tariff Challenges

Honda is set to procure hybrid vehicle batteries from Toyota to bypass tariff restrictions imposed by former U.S. President Donald Trump. The move comes as automakers adjust to rising tariffs on Chinese imports, with an additional 10% increase announced in February.

According to a Reuters report, Honda will use Toyota’s U.S.-made batteries for approximately 400,000 hybrid vehicles starting from the next financial year. This will cover all of Honda’s current hybrid car sales in the U.S.

While Honda has not officially announced the decision, manufacturers have been restructuring supply chains to reduce reliance on China. Along with the U.S., Mexico and Canada remain key markets for Honda’s operations. By collaborating with Toyota, Honda aims to mitigate risks and strengthen its hybrid vehicle production.