The American car industry is big business, both economically and politically. As with most US industries, globalization has heavily intertwined the automobile sector with the rest of the world, leading to a complex web of imports and exports that help cars reach their destinations. No passenger vehicle on the US market is made entirely from American parts — most are less than 50% American, in terms of components — underscoring how heavily automakers rely on foreign inputs.
As such, US President Donald Trump’s 25% tariffs on imported auto parts would raise production costs for US automakers, potentially reducing their competitiveness in foreign markets. Each year, the United States exports tens of billions worth of new cars assembled in domestic factories, and the graphic above shows the top five purchasers of these vehicles. We’ll be watching how US car exports perform in those five markets going forward.
