The president Donald Trump announced the enforcement dictatorial 25% in all cars imported into the US, starting today Wednesday (02.04.2025), with the aim of stimulating production in the United States.
After all, this move is a major escalation on Donald Trump’s commercial agenda, with impacts that will shake global supply chains car. As Imposing 25% duty on European cars imports in the US is approaching, The query remains: Is there a car that is really and exclusively “made in America”?
“If they are built in the US, there is absolutely no duty”Trump said, adding that “many companies will be in an advantage because they already have factories in the US… Others will come and build here. “
However, the definition of what is said ‘American -built’ car It’s not as simple as it seems.
For example, the Honda Acura Adx, Although assembled in Mexico, it has 30% of its components coming from the US or Canada. On the contrary, the Cadillac CT4assembled in the US by one of Detroit’s three major automakers, has only 15% of components from the US or Canada, while 49% comes from Mexico.
This means that even cars produced in US factories may have one A significant proportion of their accessories come from abroad. After all, modern production lines operate in a complex network of suppliers, where the design, assembly and supply of accessories are strategically distributed to reduce costs and increase efficiency.
In practice, There is no car that is 100% “made in America”. Even the most “American” models are based on imported components, which complicates any attempt to accurately define what a car means to be American.
Of the approximately 500 automakers mentioned in the NHTSA database for 2025, none has 100% American accessories.
“There are no cars that are entirely manufactured in the United States with domestic components”, said Edmunds’s Joseph Yoon analyst. ‘If duties are strictly applied huge issue For the international automotive industry. “
Which automakers will be most affected by duties
According to cars.com, about 50% of new vehicles are assembled in the US, while 19% in Mexico, 4.2% in Canada and 1.4% in China.
The automakers that import a larger percentage of their vehicles will face greater pressure. According to Bank of America analyst, General Motors (which enters 49% of its vehicles), as well as the Toyota, Hyundai and Nissan (which enter over 50%), will be more affected by duties.
On the contrary, the Fordwhich imports only 20% of its vehicles will be less affected while the Teslawhich assembles her cars in the US and is managed by Trump’s adviser and close associate, Elon Musk, is expected to have an even less impact.
However, even US companies depend on imported accessories. For example, the Ford F-150, The most popular vehicle in the US is produced in the country, but 55% of its components come from abroad. Similarly, 25% to 40% of Tesla components come from other countries.
What do duties mean to car buyers
The average price of a new car is estimated to be $ 48,000, according to Kelley Blue Book. Bank of America analysts estimate that Prices can rise to up to $ 10,000 If manufacturers fully pass the costs of customs duties to consumers, although it is more likely to be an increase of $ 4,500.
However, many doubt whether duties will be maintained. Trump argued that duties will be permanent, but some experts consider that they may be used as negotiating tool And to be lifted later.
If the duties remain, they can boost the domestic automotive industry and create jobs, as well as the UAW workers’ union.
Although some manufacturers such as Volvoexamining the transfer of more production to the US, high duties may discourage them from investing now, as they may wait for a policy change under a new government.
‘The automakers are in a dilemma’, ends with Yoon.
Information from USA Today