Where are Cars Sold in the United States Made?

As US Canada Auto Transport, we have covered the issue of President Donald Trump’s tariffs on the Canadian and Mexican auto industries extensively. That’s not surprising, considering that we, alongside our customers, stand to be greatly affected by the punitive measures that the President has imposed. The US president argues that tariffs will bring back manufacturing to the United States. That raises the question, where are cars sold in the United States currently made?

Before we get to that point, we need to talk a bit more about the man who loves tariffs and his ever changing stance on the issue. Since his reelection, Donald Trump has appeared to shift his position multiple times, a development that has added to the uncertainty that is weighing down global markets. However, on 26 March 2025, the US President finally declared that he was going to impose a 25% tariff on all car imports, beginning from 02 April. Car parts were also to be similarly tariffed starting from May 2025.

Where are US Automobiles made?

Now we get to the question, where are the cars that are sold in the United States made? It’s an interesting question. We have already noted that President Trump believes his tariffs will have the effect of forcing companies that sell vehicles in the U.S to bring back manufacturing. But what are the current figures? How many of America’s cars are made in Canada, Mexico, Japan and in other countries? The graph below presents recent figures. Note that in this case we are looking at whole car assembly. We are not looking at where parts may have been sourced.

Data in table format

The above chart is interesting in a lot of ways. But before we explain it, we need to prevent our data in table format for better understanding;

Automotive Brand	United States (%)	Canada (%)	Mexico (%)	Other (%)
Ford	60	15	15	10
GM	70	10	15	5
Stellantis	65	10	20	5
Toyota	40	5	15	40
Honda	50	5	20	25
VW	30	0	40	30
Tesla	95	0	0	5

Explanation

Ford: Shows a significant portion of cars assembled in the United States (around 60%), with notable contributions from Canada and Mexico (each around 15%).
GM: Similar to Ford, a large majority of it’s vehicle are assembled in the U.S. (around 70%), with Canada and Mexico accounting for smaller but still significant portions (around 10% and 15% respectively).
Stellantis: Also has a strong U.S. automotive assembly base (around 65%), with Canada contributing around 10% and Mexico a more substantial 20%.
Toyota: While having a significant U.S. assembly presence (around 40%), Toyota also relies on plants in Mexico (around 15%) and other countries (primarily Japan, around 40%) for vehicles sold in the U.S. Canada’s contribution is smaller (around 5%).
Honda: Mirrors Toyota to some extent, with a strong U.S. assembly base (around 50%), a notable presence in Mexico (around 20%), and imports from other countries (primarily Japan, around 25%). Canada’s role is smaller (around 5%).
Volkswagen (VW): Stands out with a lower percentage of U.S. assembly (around 30%) and a significant reliance on assembly in Mexico (around 40%) and other countries (primarily Germany, around 30%).
Tesla: Demonstrates a strong domestic focus, with the vast majority of its vehicles sold in the U.S. assembled within the United States (around 95%).

It’s not the complete picture

The above data clearly shows how the big brands are faring as far as manufacturing vehicles in the United States is concerned, right? Wrong! The truth is, the automotive industry is rather complex. We have often spoken about the high level of integration between Canadian and US automobile manufacturers.

One point that we like to make is that car parts sometimes cross the border between the 2 countries several times before they are assembled into a complete car. The same applies for the relationship between the Mexican and US auto industries. Again, there is a high level of integration.

That makes it difficult for manufacturers to quickly and easily fulfil President Trump’s desire to bring manufacturing back to the U.S. Disentangling manufacturing could very well take years. Meanwhile, the ones who will end up bearing the burden are consumers.

The case of Tesla

If you look at the above graph, you will realise that about 95% of all the Teslas that are sold in the United States are assembled locally. That makes the company the best in terms the Made in the US drive. However, things are not that simple. The graph below shows the actual US made content when we disassemble the average Tesla;

As you can see, only 50% of the parts for Tesla vehicles that are assembled in the United States are made locally. Note here that Tesla does not separate U.S and Canadian figures. Again, that’s testimony to the integration that exists between the automotive industries in the two countries.

In any case, locally manufactured parts in this regard includes those that are made in Canada. That will be problematic going forward, considering President Trump’s stance on tariffs. Elon Musk has been the President’s right hand man when it comes to reducing the size of the US government.

It remains to be seen whether or not President Trump will exempt his company, Tesla, from the bite that is to be expected out of tariffs. The above chart shows that Japan provides about 20% of Tesla car parts. Again, we are talking about those that are assembled in the US and not that are assembled elsewhere.

China is also a major supplier of Tesla and other EV car parts. Once again, that could present problems. President Trump appears to be targeting China in particular as he wages his war against practices that he claims have stolen jobs from Americans. Will car manufacturers like Tesla be able to replace Chinese made parts with those that are manufactured in the US? Or will they simply pass the cost of tariffs on to consumers?

There is global integration

When we talk about the automotive industry in the United States, we often mention that it is highly integrated with that in Canada and Mexico. That’s a point that we have already made in this article. However, as you can see in the Tesla case study, even the most American car, in terms of assembly, is not really made in the U.S when it is disassembled.

The winner, Tesla, has less than 50% of it’s parts made in the US. That’s testimony to the fact that the global car manufacturing industry is highly integrated. It’s not just a matter of Mexico, Canada and the US. Other countries play a major role in manufacturing parts that are needed all over the globe.

As such some parts that are made in the US end up in Canada, China and in other parts of the globe. Meanwhile, others that are made in these countries end up in North America. We have spoken at length about the disruptions that can be expected as President Trump’s tariffs come into play. Below we summarise them.

What disruptions can be expected?

President Trump has previously backed down when it comes to automotive tariffs. However, this time around, it looks like he will go ahead with their imposition. The imposition of a 25% tariff on imported cars and car parts into the United States will likely trigger significant disruptions across the automotive industry, affecting manufacturers, consumers, and the broader economy. Here’s a breakdown of what’s to be expected:

1. Increased Costs for Consumers

The most immediate and visible impact would be a sharp rise in the price of new vehicles. Tariffs act as a tax on imported goods, and automakers would likely pass these increased costs onto consumers. Check out our comprehensive article on how tariffs will affect vehicle prices in both Canada and the US.
Price increases will affect both foreign brands that import vehicles and domestic automakers that rely on imported parts. So, it’s not just the imported cars that will see an increase in price. Even locally assembled vehicles will be affected.
Consequently, consumers will face reduced affordability and potentially delay or forgo vehicle purchases. Many will simply decide that they don’t need a new vehicle, after all.

2. Supply Chain Disruptions

The automotive industry operates with complex, interconnected supply chains. It’s something to which we have already alluded. Many vehicles assembled in the U.S. rely on parts sourced from Canada, Mexico, and other countries.
Tariffs will disrupt these supply chains, leading to increased costs and potential delays in production.
Automakers will be forced to re-evaluate their sourcing strategies, potentially shifting production or finding alternative suppliers, which will be a costly and time consuming process.

3. Impact on Manufacturers

Automakers will face increased production costs, impacting their profit margins.
They will need to invest in restructuring their supply chains, which could involve building new facilities or finding new suppliers.
This uncertainty will also lead to a decrease in investment in new technologies and innovation.
Automakers that heavily rely on imported cars and parts will be hit the hardest.

4. Dealer Challenges

Car dealerships will face fluctuating vehicle prices, making it difficult to set sales targets and manage inventory.
Reduced consumer demand due to higher prices could lead to decreased sales and revenue.
Dealers will need to navigate increased uncertainty and provide accurate information to concerned customers.

5. Potential for Retaliatory Tariffs

The imposition of U.S. tariffs could trigger retaliatory tariffs from other countries, leading to a trade war.
This would further disrupt the automotive industry and harm the overall economy.
This could lead to a decrease in US automotive exports.

6. Impact on the Electric Vehicle (EV) Industry

The EV industry is especially vulnerable, as it relies on globally sourced materials and components, particularly batteries. As we have noted above, Elon Musk may be close to President Trump, but it doesn’t mean that his company, Tesla will be spared when it comes to the effects of tariffs.
Tariffs will increase the cost of EV production, making them less competitive.
This will slow down the adoption of EVs and hinder the transition to a more sustainable transportation sector.

The Tariff Factor and Assembly Decisions

The specter of tariffs, particularly those discussed in recent years, adds another layer of complexity to these assembly decisions. While the USMCA aims to incentivize more North American production, the potential for tariffs could force automakers to further re-evaluate their assembly footprints.

Incentivizing Domestic Assembly: Tariffs on vehicles assembled outside the U.S. could make domestically produced vehicles more competitive, potentially leading to increased investment in U.S. assembly plants.
Regional Production Shifts: Automakers might shift assembly from Canada or Mexico to the U.S. to avoid tariffs, but this would involve significant investment and logistical challenges.
Impact on Specific Brands: Brands with a higher reliance on assembly outside the U.S. (like VW) could be disproportionately affected by tariffs.