Trump Tariffs: Impact on the North American Auto Industry

Analysis of U.S. imports and sales volume, parts procurement status for major models

2025/05/02

Summary
Additional tariffs on automobiles and auto parts
Imported vehicles as a percentage of total U.S. sales
U.S. sales ranking by OEM
Parts procurement status for major models

Summary

US Sales Share by Segment (2024)
(Source: MarkLines

Sales Volume Dashboard

)

In the midst of successive announcements of additional tariffs by the Trump administration, the most impactful on the automotive industry is the additional 25% tariff on automobiles and automotive parts based on Section 232 of the 1962 Trade Expansion Act. The additional tariff came into effect on April 3.

If the rules of origin of the USMCA (United States-Mexico-Canada Agreement) are met, the additional 25% tariff on automobiles and automobile parts under Section 232 will be levied on products other than those with U.S. value added.

Regarding IEEPA (International Emergency Economic Powers Act)'s reciprocal tariffs, which impose different rates on a country-by-country basis based on the amount of the U.S. trade deficit, products which are subject to the automobiles and automobile parts based on Section 232, are exempt.

According to MarkLines data, new car sales volume in the United States was approximately 16.49 million units (2024), with Japanese automakers accounting for 35.9% and American automakers 33.6%, with the top three groups being GM, Toyota, and Ford. Approximately 6.44 million vehicles (in 2024) were imported (excluding imports from Canada), with GM, Hyundai, and Toyota being the top three importers. Approximately 39% of new vehicles sold in the U.S. are imported, and even vehicles produced in U.S. assembly plants use many imported parts. The majority of high-selling models are American brand pickup trucks and foreign brand SUVs, most of which are produced in assembly plants in North America.

This report summarizes the additional automobile-related tariffs announced by the Trump administration, compares them with U.S. new car sales and import data, and examines their impact on the automobile industry, focusing on the North American supply chain, including Mexico and Canada.

Related Reports:
U.S. Market: Transition towards the new Trump Administration (Dec. 2024)
Trump Speech in Detroit (Oct. 2024)

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