Purchasing goods made in one’s own country has always been a priority for some people. In , this desire has gained more relevance, especially with the recent introduction of decisive tariffs of 25% on cars made outside the country. Fortunately, a useful document from the US government now provides a clear understanding of how ‘American’ the cars sold in the country really are. Recently, Donald Trump signed a proclamation that imposes additional tariffs not only on whole cars but also on car parts. This concerns components used in the US for the final assembly of a car.
We have detailed the complex situation . Here we will show you a document that details where each car sold in the US is manufactured. According to the American Automobile Labeling Act (AALA), this document contains information on five key aspects. Firstly, it reveals the percentage of a car that is made in the USA or , without distinction between them. Secondly, it indicates the final assembly location.
Furthermore, it provides information on the origin of the engine and transmission. Finally, it also details the percentage of a car that comes from other continents. For example, one version of the Hyundai Ioniq 5 contains 29% American components, 29% components made in and 33% Hungarian. The Volvo S60 T8 Plug-In Hybrid consists of 20% American parts, 15% Finnish, and 15% Swedish parts. However, most cars are not distributed among so many countries.
Instead, most of them are made either fully in the USA/Canada or outside of them. Some details may surprise consumers, however. Take, for example, the Lincoln Nautilus. Only 5% of this car is made in the USA, with 87% originating from China. On the other hand, the Kia EV6 contains 80% American components, while the Honda Ridgeline and Acura MDX – 70 percent American-made.
Overall, about 45% of cars sold in the USA are imported, mainly from Mexico and Canada. But this number tells only part of the story—as the AALA document shows, even cars assembled here contain parts from abroad. All these cars will be subject to future tariffs, one way or another. Whether this will help American consumers remains to be seen.