Trump's tariffs may impact 20% of new car sales in the United States | Carscoops

      Almost 45% of all VW Group models sold in the United States last year were manufactured in Mexico.

      In 2022, 2.19 million vehicles delivered in the US were sourced from Mexico.

      Around 717,000 cars produced in Canada found buyers in the United States.

      One analyst suggests that President Trump might also focus on cars manufactured in the EU.

      The pro-tariff policies of the new Trump administration are anticipated to significantly affect the domestic car industry, with new data indicating they could impact nearly 20% of all new cars sold in the US. Certain automakers, including Volkswagen, Stellantis, and Nissan, may face more severe consequences.

      From the 16.1 million light vehicles sold in the United States last year, 9.86 million, which is 61%, were produced domestically, thereby avoiding the new 10% tariffs and the proposed 25% tariffs on imports from Mexico and Canada, which are currently on hold for 30 days. Around 2.19 million light vehicles manufactured in Mexico were imported to the US last year, making up 13.6% of the market share.

      Vehicles produced in Mexico are becoming increasingly prevalent. Shipments from Mexico have risen by 13% year over year, in contrast to a mere 1.7% increase in cars made in the US. As for Canada, about 717,000 of the 16.1 million cars sold locally originated from there, equating to 4.5%. Roughly 57,000 vehicles manufactured in China were sold in the US in 2024, representing 0.4% of the overall market.

      The Volkswagen Group may be most severely affected by tariffs imposed on Mexico. Of the vehicles it offers in the US, 44% are sourced from Mexico. JATO Dynamics Global Analyst Felipe Munoz notes that four of VW’s five top-selling models in the US are produced in Mexico. Should these vehicles incur 25% tariffs, the brand will likely need to raise prices and either relocate production to the US or another tariff-free market.

      The tariffs could also significantly impact Stellantis, with more than 40% of its US sales stemming from Mexico and Canada. Nissan imports over 30% of its vehicles from Mexico, while more than 25% of Toyota’s models are produced in Canada or Mexico.

      JATO speculates that vehicles manufactured in the European Union may also face tariffs in the future. Last year, 821,000 vehicles sold domestically were imported from the EU, mainly from the VW Group, BMW Group, and Mercedes-Benz.

      “While it's challenging to predict what the Trump administration will decide in trade matters next, the actions taken so far in the first month are indicative of future trends. It will become progressively more difficult to import cars into the US, and the European Union should brace itself for potential restrictions on trade,” Munoz stated.