Honda is looking to source batteries from Toyota for U.S.-market hybrids amid continuing uncertainty over the Trump Administration's tariffs, Nikkei Asia reported Monday.
Starting this fiscal year, Honda is planning to buy enough batteries for approximately 400,000 vehicles, according to the report. Honda sold 308,000 hybrids in the U.S. in 2024, accounting for 22% of its overall sales, so this would effectively cover all of its hybrid-battery needs for this market, Nikkei noted.
Honda has been sourcing batteries for its hybrid models from Japan and China, but is looking for alternatives to avoid current and potential tariffs, the report said. On Mar. 4 Trump imposed an additional 10% tariff on all Chinese imports, on top of a 10% tariff imposed a month earlier. Trump is also expected to raise tariffs on Japanese auto imports from 2.5% to 25%.
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