Complex Global Supply Chains
Even vehicles fully assembled in U.S. plants rely heavily on foreign parts. For example, a 2025 Ford Expedition built in Kentucky shows a 58% share of non-U.S. content on its label, including 22% from Mexico. Assembling a car domestically doesn’t guarantee it’s fully American-made.
Tariffs and Localization Efforts
In response to 25% auto tariffs imposed by the Trump administration, automakers have accelerated investments in U.S. facilities. Yet many components—like semiconductors, fasteners, and wiring harnesses—remain more economical to produce abroad, even with tariffs.
Raw Materials and Production Gaps
Key inputs such as steel, aluminum, platinum, and palladium lack sufficient U.S.-based processing capacity. Building mines and processing plants domestically could take a decade or more and require multibillion-dollar investments.
Rising Consumer Costs
Experts estimate that each step toward 100% U.S. content adds thousands of dollars per vehicle. For a typical $48,000 new car, sourcing additional American parts could raise the price by $10,000–$20,000, potentially pricing out many buyers.
Realistic Targets: 75% U.S./Canada Content
Reaching a 75% U.S./Canadian parts threshold is far more feasible and already met by models like the Kia EV6, certain Tesla Model 3 versions, and the Honda Ridgeline AWD TrailSport. However, scaling this across the industry still requires billions in new investments.
Long-Term Outlook
Achieving 95%+ U.S. content would be exponentially expensive and could take 10–15 years and $100 billion in investment—comparable to starting a new, low-volume luxury automaker. For now, automakers balance costs, consumer demand, and nationalization goals to find the right mix of domestic and imported parts.
