President Donald Trump's decision to impose a 25 percent tariff on all imported vehicles could have significant ramifications for carmakers that assemble in the United States but rely on imported products.
The tariffs, scheduled to take effect on April 3, will apply to all non-U.S.-made vehicles. According to Trump, the move is designed to reduce the trade deficit.
Why It Matters
The auto industry is deeply intertwined with global supply chains, and many U.S. carmakers, including Tesla, owned by Trump's close ally Elon Musk, rely heavily on parts manufactured abroad. In 2024, the U.S. imported $474 billion in automotive products, including $220 billion worth of passenger cars.
Major exporters to the U.S. include Canada, Mexico, Japan, South Korea, and Germany, all of which stand to be heavily impacted by the new tariffs.
What To Know
On Wednesday, Trump unveiled the tariff plan, stating that "all cars that are not made in the United States" would be subject to the levy. He threatened further tariffs if allied nations retaliated in coordination.
"If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both," Trump posted on Truth Social.
However, car companies that assemble their vehicles in the U.S. still frequently rely on imported parts from other parts of the world, and the Trump administration has not yet confirmed how the policy will impact these supply chains.

Which Cars Could Face Tariffs?
According to data from the National Highway Traffic Safety Administration, 114 car models are assembled in the U.S. but rely on parts from manufacturers based in other countries. The list includes dozens of household names, including Honda, Lexus, Cadillac, Ford, Tesla, Volvo, Chevy, and BMW.
Each model listed below is assembled in the U.S. but has a proportion of parts and products supplied from South Korea (K), Japan (J), Germany (G), Mexico (M), China (CH), Canada (C), Sweden (SW) and Finland (FN).
Maker | Model | Percent Content US/ Canada | Percent Content Other Countries |
Genesis | GV70 EV | 17% | 80% K |
Genesis | GV70 | 25% | 70% K |
Honda | CR-V e-FCEV | 25% | 65% J |
Lexus | TX 550h+ | 25% | 65% J |
Cadillac | CT4 | 15% | 49% M |
Cadillac | CT5 | 15% | 49% M |
Hyundai | Santa Fe HEV | 39% | 46% K |
Nissan | Leaf | 30% | 45% J |
Nissan | Rogue | 25% | 40% J |
Lexus | ES 300h | 45% | 40% J |
Lexus | TX 500h | 45% | 40% J |
Toyota | Corolla Cross Hybrid | 50% | 40% J |
Hyundai | Santa Fe | 47% | 36% K |
Cadillac | XT5 | 31% | 35% M |
Cadillac | XT6 | 31% | 35% M |
Volkswagen | Atlas Cross Sport FWD | 56% | 35% M |
Kia | Sorento | 55% | 35% K |
Subaru | Crosstrek | 45% | 35% J |
Lexus | ES 250/350 | 50% | 35% J |
Toyota | Grand Highlander Hybrid | 55% | 35% J |
Kia | EV9 Electric | 30% | 35% CH |
Volkswagen | Atlas Cross Sport 4Motion | 58% | 33% M |
Volkswagen | Atlas FWD | 59% | 32% M |
Volkswagen | Atlas 4Motion | 60% | 31% M |
Mazda | CX-50 Hybrid | 50% | 30% M |
Volvo | EX90 Twin Motor Plus | 20% | 30% M |
Volvo | EX90 Twin Motor Ultra | 25% | 30% M |
Cadillac | Escalade EV | 36% | 30% K |
Chevy | Silverado/Sierra EV | 36% | 30% K |
GMC | Hummer EV | 36% | 30% K |
Hyundai | Tucson | 55% | 30% K |
Kia | Sportage | 60% | 30% K |
Kia | Telluride | 60% | 30% K |
Subaru | Ascent | 50% | 30% J |
Subaru | Legacy | 50% | 30% J |
Subaru | Outback | 50% | 30% J |
Toyota | Camry Hybrid | 55% | 30% J |
Toyota | Highlander Hybrid | 55% | 30% J |
Toyota | Sienna HV | 60% | 30% J |
Hyundai | Ioniq 5 | 63% | 29% K |
Hyundai | Ioniq 5 | 29% | 29% K |
Ford | Escape | 36% | 27% M |
Ford | Escape PHEV | 36% | 27% M |
Hyundai | Santa Cruz | 60% | 27% K |
BMW | XM | 26% | 26% G |
Lincoln | Corsair | 38% | 25% M |
Lincoln | Corsair PHEV | 38% | 25% M |
Cadillac | XT4 | 39% | 25% M |
Chevy | Malibu | 39% | 25% M |
Mazda | CX-50 | 60% | 25% M |
Tesla | Cybertruck | 65% | 25% M |
Tesla | Model X | 60% | 25% M |
Tesla | Model Y Long Range AWD | 70% | 25% M |
Tesla | Model Y Long Range RWD | 70% | 25% M |
Toyota | Corolla | 55% | 25% J |
Toyota | Corolla Cross | 60% | 25% J |
Toyota | Grand Highlander | 65% | 25% J |
Toyota | Sequoia Hybrid | 50% | 25% J |
Toyota | Tundra Hybrid | 50% | 25% J |
Mercedes-Benz | GLE Coupe (GLE450-4M) | 10% | 25% G |
Mercedes-Benz | GLE Coupe (GLE53-4M) | 10% | 25% G |
Mercedes-Benz | GLE Coupe (GLE63S) | 10% | 25% G |
Mercedes-Benz | GLE SUV (GLE350-4M/GLE350/GLE450- 4M) | 10% | 25% G |
Mercedes-Benz | GLE SUV (GLE450e-4M) | 10% | 25% G |
Mercedes-Benz | GLE SUV (GLE580-4M) | 10% | 25% G |
Mercedes-Benz | GLE SUV (GLE63 S) | 10% | 25% G |
Mercedes-Benz | GLE SUV (GLE53-4M) | 10% | 25% G |
Mercedes-Benz | GLS SUV (GLS450-4M) | 10% | 25% G |
Mercedes-Benz | GLS SUV (GLS580-4M) | 10% | 25% G |
Mercedes-Benz | GLS SUV (GLS63) | 10% | 25% G |
Mercedes-Benz | GLS SUV (GLS600 Maybach) | 10% | 25% G |
Lincoln | Navigator | 40% | 23% M |
Ford | Expedition | 42% | 22% M |
Ford | Mustang | 41% | 22% M |
Buick | Enclave | 35% | 22% M |
Chevy | Traverse | 35% | 22% M |
GMC | Acadia | 35% | 22% M |
Ford | Ranger | 46% | 20% M |
Tesla | Model 3 Long Range AWD | 75% | 20% M |
Tesla | Model 3 Long Range RWD | 75% | 20% M |
Tesla | Model 3 Performance | 70% | 20% M |
Tesla | Model S | 65% | 20% M |
Tesla | Model Y Performance | 70% | 20% M |
Kia | EV9 Electric | 60% | 20% K |
Honda | Accord Hybrid Sport/Touring | 55% | 20% J |
Honda | Civic 5Dr | 50% | 20% J |
Honda | Civic 5Dr | 50% | 20% J |
Honda | CR-V AWD | 55% | 20% J |
Honda | CR-V AWD | 55% | 20% J |
Honda | CR-V AWD | 55% | 20% J |
Honda | CR-V AWD | 55% | 20% J |
Nissan | Frontier | 40% | 20% J |
Lexus | TX 350 | 65% | 20% J |
Toyota | Highlander | 65% | 20% J |
Ford | Explorer | 43% | 17% M |
Ford | Bronco | 42% | 16% M |
Lincoln | Aviator | 40% | 16% M |
Volvo | S60 B5 | 30% | 15% SW |
Nissan | Altima 4CYL | 50% | 15% M |
Nissan | Pathfinder | 50% | 15% M |
Kia | EV6 | 80% | 15% K |
Acura | Integra | 60% | 15% J |
Acura | Integra | 60% | 15% J |
Acura | TLX Type-S | 50% | 15% J |
Acura | TLX Type-S Perf Tire | 55% | 15% J |
Honda | CR-V FWD | 60% | 15% J |
Honda | CR-V FWD | 60% | 15% J |
Honda | CR-V FWD | 60% | 15% J |
Honda | CR-V FWD | 60% | 15% J |
Toyota | Tundra | 55% | 15% J |
BMW | X3 | 9% | 15% G |
Mercedes-Benz | EQS SUV (EQS450+/EQS450-4M/EQS580 4M/EQS680 Maybach) | 10% | 15% G |
Volvo | S60 T8 Plug-in Hybrid | 20% | 15% FN |
Mercedes-Benz | EQE SUV (EQE 350+/EQE 350-4M/EQE 500-4M) | 10% | 10% G |
What People Are Saying
Rella Suskin, an equity analyst at Morningstar, told Newsweek that the tariffs could limit investment in the U.S.: "Domestically produced vehicles are expected to gain market share, but very few, even from US-based manufacturers, are made with 100 percent U.S. content.
"Short-term supply chain challenges are also anticipated. We foresee announcements of increased capital expenditure from many automakers, which would impact free cash flow, alongside restructuring expenses that could erode profitability. For smaller-scale automakers, relocating certain production aspects to the U.S. may not be feasible or economical."
What Happens Next
The tariffs will be enforced beginning April 3. Top exporters such as Japan and South Korea have announced plans for emergency responses.

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About the writer
Theo Burman is a Newsweek Live News Reporter based in London, U.K. He writes about U.S. politics and international news, ... Read more