The Problem With Car Tariffs: What’s an Import?

The Problem With Car Tariffs: What’s an Import? 0 50 100% Chevrolet Blazer Toyota RAV4 Nissan Rogue Imported from Mexico Imported from Canada Assembled in the United States Origin country of parts Origin country of parts Origin country of parts Mexico U.S./Canada Other Japan Other U.S./Canada Japan Other U.S./Canada 0 50 100% 0 50 100% 0 50 100% Nissan Rogue Chevrolet Blazer Imported from Mexico Assembled in the United States Origin country of parts Origin country of parts Mexico Other U.S./Canada U.S./Canada Japan Other U.S./Canada 0 50 100% 0 50 100% Toyota RAV4 Imported from Canada Origin country of parts U.S./Canada Other Japan 0 50 100% Source: The National Highway Traffic Safety Administration The New York Times President Trump’s 25 percent tariffs on goods from Canada and Mexico could be felt particularly acutely by automakers — and car buyers — because of the number of vehicles and parts that come into the United States every day as they head to market. Japan Mexico Germany South Korea Britain 1990 1995 2000 2005 2010 2015 2020 Source: United States International Trade Commission By The New York Times Manufacturers achieve economies of scale by building engine and transmission plants that are large enough to supply a number of vehicle factories in North America. Where America’s imported cars came from in 2023 Mexico 1.98 million cars Japan 1.47 million South Korea 1.27 million Canada 1.24 million Germany 394,930 China 387,560 Other 287,700 Slovakia 99,460 Italy 85,950 Sweden 85,530 Britain 77,090 Mexico 1.98 million cars Japan 1.47 million South Korea 1.27 million Canada 1.24 million Germany 394,930 China 387,560 Other 287,700 Slovakia 99,460 Italy 85,950 Sweden 85,530 Britain 77,090 Source: The Observatory of Economic Complexity By The New York Times The threat of tariffs has automakers fretting. “Long term, a 25 percent tariff across the Mexico and Canada borders would blow a hole in the U.S. industry that we’ve never seen.” On Wednesday, the chairman of Stellantis, John Elkann, said his company supported Mr. Trump’s desire to promote American manufacturing, but added that the company — whose brands include Chrysler and Jeep — felt that trade with Mexico and Canada should remain “tariff free.” Number of cars produced in America of any brand Recession 12 million 8 million 4 million 0 2000 2005 2010 2015 2020 12 mil.