There’s no such thing as a fully American-made car: Trump tariffs highlight global dependence

Trump has ruled out tariffs on vehicles built entirely in the U.S., but industry executives and analysts say there’s not a single one with all-domestic parts and assembly.

President Donald Trump suggested over the weekend that consumers could dodge his sweeping 25% tariffs on foreign vehicles and auto parts by buying cars made entirely in the United States. The only problem: There aren’t any.

“If you make your car in the United States, you’re going to make a lot of money,” he told NBC News in an interview Saturday. “If you don’t, you’re going to have to probably come to the United States, because if you make your car in the United States, there is no tariff.”

Trump, who is set to announce a new tranche of broad-based tariffs Wednesday, said he “couldn’t care less” if automakers raise prices to offset the costs of the import taxes and denied recent reporting that he’d threatened industry executives not to do so.

Mark Gendregske of Alger, Mich., charges his Kia EV6, on Feb. 10, 2023 in Ypsilanti, Mich. Carlos Osorio / AP fileEven U.S.-assembled automobiles by major American brands rely heavily on complex global supply chains for the roughly 30,000 parts that make up the average car. Overall, the percentage of auto parts that are sourced abroad hovers around 40%, said Dan Ives, the global head of technology research at Wedbush Securities, a financial services firm.

“U.S.-made cars with all U.S. parts is a fictional tale,” Ives said.

https://www.nbcnews.com/business/autos/trump-tariffs-fully-american-made-car-rcna198974

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