President Trump’s newly announced tariffs on imported cars and auto parts are set to impact nearly every major automaker — but not equally. Each company’s exposure depends on where they build their vehicles and source parts, The New York Times reports.
Tesla is the least affected. Most of its cars are built in California and Texas, though about 25% of parts come from abroad. Still, global backlash over Trump’s tariffs could lead to retaliation against Tesla, especially in countries where Elon Musk’s political ties are controversial.
General Motors is more exposed. Around 40% of its U.S. sales come from vehicles built abroad, especially in Mexico. However, GM’s recent profitability gives it more flexibility to absorb the impact.
Ford assembles 80% of its U.S. sales domestically, shielding it somewhat. Yet it still depends on imported parts, including engines from Canada. Ford is also losing money on EVs, and its Mach-E is made in Mexico — making it vulnerable.
Stellantis, which owns Chrysler and Jeep, makes several popular models like Ram trucks in Mexico and minivans in Canada, putting it directly in the tariffs’ crosshairs.
Toyota sold 2.3 million cars in the U.S. last year, with about a million built overseas. Still, its financial strength and production footprint could cushion the blow better than rivals.
Volkswagen could be hit hard. It imports most models and only builds two in Tennessee.
Hyundai and Kia have expanded U.S. production with factories in Georgia and Alabama and a new EV plant. But they still import many vehicles from South Korea, leaving them partially exposed despite heavy U.S. investment.
In short, the tariffs are likely to favor automakers with deep U.S. production — while pressuring those with heavy reliance on imports — and isn’t that the goal?
President Trump has ordered a 25% tariff on all vehicles built outside the U.S., starting April 3.
In 2024, nearly half of all new vehicles sold in the U.S. were imported. Total automotive imports reached $474 billion, with $220 billion in passenger cars.
Meanwhile, citing data from Wards Automotive and Barclays, Axios says the president’s tariffs will hit foreign automakers the hardest while still having a significant effect on domestic players like General Motors and Ford.
Volvo (13%), Mazda (19%) and Volkswagen (21%) make the lowest share of their U.S.-sold vehicles in the U.S., according to the research. Other companies that make less than half of their U.S.-sold vehicles domestically include Hyundai-Kia (33%), Mercedes (43%), BMW (48%) and Toyota (48%).
Approximately 45% of U.S.-sold vehicles are imported, with the lion’s share coming from Mexico and Canada. Notable imported 2025 models include the Ford Maverick pickup, the Chevrolet Blazer crossover, the Hyundai Venue crossover, the Nissan Sentra compact car, the Porsche 911 sports car and the Toyota Prius hybrid, according to the Department of Transportation.