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Honda’s American operations stood to take something of a hit from the Trump administration’s tariff-heavy trade practices. However, the Japanese brand recently decided to purchase batteries from long-time rival Toyota to side-step the duties. Honda will reportedly purchase batteries from Toyota’s Liberty, North Carolina, battery complex to outfit around 400,000 hybrid vehicles.

Honda will buy batteries for its hybrid vehicles from Toyota’s $13.9 billion North Carolina facility to dodge Trump tariffs

Toyota and Honda have a long history of rivalry in the United States. Civic versus Corolla. Camry versus Accord. CR-V versus RAV4. However, Honda is set to put some of its classic rivalries aside to avoid feeling the brunt of tariffs in the US vehicle market. Instead, the Japanese brand will procure batteries for its US-market hybrid vehicles from its rival’s sprawling battery complex in Liberty, North Carolina. 

According to Reuters, the brand behind the popular CR-V and Civic will purchase batteries to outfit around 400,000 vehicles. Japan’s Nikkei media outlet says the number represents enough to equip all of its US-market hybrid vehicles. Those figures include the the popular CR-V Hybrid, a direct competitor for the best-selling RAV4 Hybrid.

The Nikkei newspaper went on to say that the automaker sources its hybrid batteries for American-market hybrids from Japan and China. However, the brand would feel the squeeze of probable Trump administration tariffs should it continue to pull batteries from Asia.

It’s not the only indication that Honda has tariffs on the mind, either. The automaker recently decided to shift production of the popular Civic Hybrid sedan’s next-generation model to Indiana. The move replaces plans to build the Civic Hybrid in Mexico and serves to shield the Japanese marque from potential tariff structures.

Toyota’s North Carolina TBMNC battery facility is a $13.9 billion planned factory and the brand’s first dedicated battery-production plant in North America. The TBMNC is on track to begin producing batteries this year with over 5,000 employees.

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Erik Sherman

Erik Sherman is a MotorBiscuit Staff Writer, an admitted petrolhead, and an avid motorcyclist. Erik also has extensive experience with military and emergency vehicles, ranging from ambulances and fire engines to MRAPs and Humvees. Erik is an eager car and motorcycle reviewer with expertise covering everything from sports cars and electric motorcycles to pontoon boats and jet skis. Erik holds a Bachelor’s Degree from the University of Texas at Austin. He also studied Chinese, Energy, and European Politics at the University of Glasgow in Scotland. Erik’s background is unorthodox; he is a United States Marine Corps (USMC) combat veteran, water survival practitioner, and a former firefighter/EMT. Additionally, Erik is a regular volunteer and former instructor with the American Red Cross (ARC). When he’s not working, you can find Erik on his motorcycle or out for a spirited drive.