RSS SubscribeVisualized: Where Automakers Build Cars Sold in America
By Pallavi Rao – Visual Capitalist
Few would have predicted how car manufacturing supply chains would be put under the spotlight in 2025.
And yet with looming Trump tariffs, the North American car industry has had its logistics laid bare: with supply chains criss-crossing the Mexico and Canada borders, sometimes multiple times for the same car.
To bring some data to this discussion, we visualize where cars sold in America are made by major automakers. Data for this chart is sourced from The Economist.
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#Trumptariffs #NorthAmericancarindustry
Why Trump’s auto tariffs will hurt his working-class supporters
Working-class car buyers will be the hardest hit by U.S. President Donald Trump’s 25% tariff on imported vehicles because almost all low-cost new cars sold in the United States are built elsewhere.
Lower-income buyers will suffer another blow from expected hikes in used car prices as demand surges and supply shrinks.
New cars priced under $30,000 are already rare as the average new-vehicle price approaches $50,000. The only way automakers can eke out profits on economy cars, analysts say, is to build them in nations with lower manufacturing costs.
A Reuters review of data from two auto research firms found just 16 models with an average sticker price less than $30,000 and only one, Toyota’s (7203.T), opens new tab Corolla, that is assembled in the United States. All others are made in Mexico, South Korea, or Japan.
Slapping a 25% tariff on these low-end cars may force price increases that make them unaffordable to their target market or cause some automakers to abandon them entirely, industry analysts said.
https://www.reuters.com/business/autos-transportation/why-trumps-auto-tariffs-will-hurt-his-working-class-supporters-2025-03-30/
Canada and Mexico won protections against potential new U.S. auto tariffs in 2018 as part of the U.S.-Mexico-Canada Agreement on trade, but there is no evidence that President Donald Trump will honor those commitments as he imposes 25% duties on global automotive imports.
The side letters to the USMCA trade deal agreed to by Trump’s first administration granted both Mexico, opens new tab and Canada, opens new tab a 60-day delay on the imposition of any global auto tariffs as a result of his first-term Section 232 national security investigation into auto imports.
Once that North America-only grace period expired, Canada and Mexico would each get an annual duty-free import quota of 2.6 million passenger vehicles and an unlimited number of light truck imports.
The letters, signed by Trump’s former U.S. Trade Representative Robert Lighthizer, also granted Mexico a duty-free quota on annual parts imports valued at $108 billion and Canada a $34.2 billion parts quota.
https://www.reuters.com/world/us/no-sign-trump-will-honor-us-auto-tariff-protections-won-by-canada-mexico-2018-2025-03-29/