Honda says it may not build a new plant in North America unless a trade deal is extended. The company frames the issue as a production and business planning decision tied to trade conditions.

Honda’s executive vice president Noriya Kaihara says the automaker is close to full production capacity in North America and needs additional manufacturing capacity, which is why a new factory is under consideration. The outlets report Honda’s position in the context of uncertainty around the future terms of the relevant trade arrangement, with the company linking the timing of investment to whether the deal continues.

While the plant decision is the central focus across reports, one outlet also adds background on Honda’s broader strategy: in May, Honda abandons long-term electric-vehicle sales targets that had included a goal for EVs to make up 20% of new car sales by 2030. That additional context highlights that Honda is reassessing multiple parts of its long-term plan, not only its manufacturing footprint.