Following Trump’s proposed tariff, a viral social media claim alleges that Honda and Toyota plan to shut down their U.S. assembly lines to avoid paying a 25% premium on materials. While this assertion has gained traction recently, Fact Crescendo’s investigation found it to be misleading.
Social Media Claim
A widely shared social media claim alleges that Honda and Toyota will shut down their U.S. assembly lines due to their unwillingness to pay increased material costs.
Below is a screenshot of a Facebook post on March 15, 2025, claiming “Honda and Toyota are preparing to execute plans to shut down assembly lines in the US because they are unwilling to pay a 25% premium on materials. Tens of thousands of workers in plants in Ohio, Kentucky. Alabama, Tennessee, Mississippi, and Georgia will be sent home without pay.”
The claim has also been shared on various social media platforms, including X (formerly Twitter), as well as Threads, which is owned by Meta.
Below is the screenshot of a Threads post in February claiming “Honda and Toyota are preparing to execute plans to shut down assembly lines in the US.”
Below is a screenshot of the claim circulated on X on February 17, 2025, stating: “Honda/Toyota are preparing to execute plans to shut down assembly lines in the US because they are not willing to pay a 25% premium on materials.”
Due to the widespread sharing of similar claims on social media, the same claim can be found through the links provided here: Link 1 (archived), Link 2 (archived), and Link 3 (archived).
Given the claim’s extensive dissemination and the considerable attention it has received from the internet community, we believed it was necessary to perform a fact-check on the above subject.
Fact Check
Fact Crescendo began debunking this claim by thoroughly reviewing credible news reports from reputable media outlets and directly seeking clarification from the corporations involved. Then, we discover the following facts.
According to The Hill, after taking office in 2025, Trump imposed new tariffs on imported goods by issuing an executive order implementing a 25% tariff on goods from Canada and Mexico. He also proposed a further 25% tariff on automobiles, pharmaceuticals, and semiconductor chips, with more details expected on April 2.
This has sparked speculation that major Japanese automakers, such as Toyota and Honda, might consider closing their assembly operations in the United States.
However, neither Honda nor Toyota has issued official announcements regarding plans to shut down their U.S. assembly lines due to material cost increases.
The screenshot below, taken from the Honda Newsroom on March 26, 2025, indicates no announcements regarding potential shutdowns of their U.S. assembly lines due to material cost concerns.
Honda Newsroom | Archived Link
Fact Crescendo contacted Honda for clarification regarding this claim. While the corporation has not yet responded, we will provide updated information as soon as their response is received.
A review of the corporation’s newsroom shows no official announcement from Toyota, the world’s largest carmaker, addressing the above claim.
Toyota Newsroom | Archived Link
Our Fact Crescendo team has reached out to Toyota & Honda in the U.S. via email as well as the local representative in Cambodia, seeking clarification regarding the above-mentioned post. As of now, we have not received any response or feedback from the company. We will update this article promptly with any new information or replies from their team.
The closure of Toyota and Honda assembly operations in the U.S. is a significant development that warrants global coverage by trusted and reputable media outlets.
However, a keyword search revealed that no such news report has been covered by Reuters, The New York Times, or Bloomberg.
Below is the screenshot of our keyword search on Google conducted on March 26, 2025, featuring no news reports that both carmakers close their assembly lines in the U.S.
Google Keyword Search | Archived Link
On the contrary, both Honda and Toyota remain committed to making substantial investments in their U.S. operations, prioritizing manufacturing advancements and the development of cutting-edge electric vehicle (EV) technologies.
In January 2025, Honda announced a $300 million investment in its three Ohio auto plants, bringing its total commitment to Ohio to $1 billion since 2022. The funds will enhance manufacturing flexibility, enabling the production of EVs, hybrids, and gasoline-powered vehicles on the same assembly lines.
Also, to mitigate the impact of proposed U.S. tariffs on imported goods, Honda plans to source batteries for its hybrid vehicles from Toyota’s U.S. plant. This strategy is expected to cover batteries for approximately 400,000 vehicles, including models like the CR-V hybrid.
Fact Crescendo also found that Toyota has continued to invest heavily in its U.S. operations, focusing on electrification and manufacturing improvements. According to its official website, the company reaffirmed its commitment to a $13.9 billion battery plant in Greensboro, North Carolina.
This will be Toyota’s first dedicated battery plant in North America, creating over 5,000 jobs. Battery production for hybrid vehicles began in early 2025, with plans to produce EV and plug-in hybrid batteries later in the year.
Toyota’s U.S. market sales increased by 3.7 percent in 2024, surpassing the previous year’s sales figure of 238,933, according to the company’s annual report (archived) released earlier this year.
Honda reported strong vehicle sales in 2024, with a total of 1,423,857 units sold—an increase of 8.8 percent compared to the previous year’s figure, according to the carmaker’s annual report (archived) released earlier this year.
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Conclusion
Fact Crescendo found that the above claim is misleading. Neither company is planning to shut down its assembly lines in the U.S. due to material cost concerns. Despite cost pressures, both companies reaffirmed their commitment to investing in and expanding U.S. operations to drive long-term growth.
Title:Japan’s Leading Automakers Pledge to Invest and Expand in the U.S. Market
Fact Check By: Kakada SimResult: Misleading
