Honda has decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, according to three people familiar with the matter.

Honda is scrapping plans to produce its next Civic model in Mexico and moving production to Indiana to avoid President Trump’s upcoming tariffs, according to a report. The Japanese auto giant had initially planned to manufacture the next-generation Civic in Guanajuato,