Searching for a Car That’s 100% ‘Made in America’? Good Luck Finding One

President Trump announced the imposition of a 25% tariff on all vehicles imported into the U.S., effective from today, Wednesday (April 2, 2025), aiming to boost domestic production. This move marks a significant escalation in Trump’s trade agenda, with ripple effects across global supply chains. The question remains: Does a car truly and exclusively ‘made in America’ even exist? “If they’re built in the U.S., there will be absolutely no tariffs,” Trump stated, adding that companies with existing facilities in the U.S. will benefit while others may soon follow suit. However, defining what constitutes ‘American-made’ is more complex than it seems. For example, the Honda Acura ADX, assembled in Mexico, has 30% of its parts sourced from the U.S. or Canada. Conversely, the Cadillac CT4, assembled by one of Detroit’s Big Three automakers in the U.S., contains just 15% American or Canadian parts, with 49% coming from Mexico. Modern production lines operate within a complex supplier network where design, assembly, and parts sourcing are strategically distributed to reduce costs and enhance efficiency. In reality, no car is 100% ‘Made in America.’ Even the most ‘American’ models rely on imported parts, complicating any attempt to define what being American-made truly means. Of the roughly 500 automakers listed in NHTSA’s 2025 database, none have 100% American parts. Analyst Joseph Yoon from Edmunds noted, “There are no cars manufactured entirely in the U.S. with domestic parts.” If tariffs are strictly enforced, it could pose a massive issue for the international auto industry. According to Cars.com, about 50% of new vehicles are assembled in the U.S., 19% in Mexico, 4.2% in Canada, and 1.4% in China. Automakers importing higher percentages of their vehicles will face greater pressure. General Motors (importing 49% of its vehicles) and Toyota, Hyundai, and Nissan (importing over 50%) will be hit hardest, while Ford (importing only 20%) and Tesla, which assembles its vehicles domestically, will be less affected. However, even American companies rely on imported parts; for instance, the Ford F-150, America’s most popular vehicle, uses 55% foreign parts, and Tesla relies on up to 40% imported components. The average price of a new car is estimated at $48,000, according to Kelley Blue Book. Analysts predict prices could rise by up to $10,000 if manufacturers fully pass on tariff costs to consumers, though a more likely increase would be around $4,500. Despite this, some experts doubt the tariffs will remain permanent, suggesting they might serve as a negotiating tool. If they do persist, they could strengthen domestic automaking and create jobs, supported by the United Auto Workers union. Some manufacturers like Volvo are considering shifting more production to the U.S., but high tariffs might deter them from investing now, as they await potential policy changes under a new administration. “Automakers find themselves in a dilemma,” concludes Yoon.