Can Americans Truly Afford to Purchase Cars Made in America?
The Mazda3, an affordable new vehicle, is manufactured in Japan and Mexico.
This morning, a recent survey indicated that 55% of "in-market car shoppers" would consider paying more for a vehicle if it helped create American jobs. If new taxes continue to deter imported cars and materials from entering our market, we may find ourselves with no alternatives. Cars produced in American factories have the highest average price—$53,000—compared to the overall average of around $50,000.
The latest "American-Made Index" from Cars.com provides a wealth of information about the current state of our auto industry and its connection to the global automotive market. Some of the 2025 AMI statistics align with trends we've observed in recent years: Tesla and Honda dominate car production in the U.S., while the Ford F-150 and Chevy Silverado do not rank among the top 20 "most American" vehicles. The Jeep Gladiator, produced in Toledo, stands out as the only pickup truck that aligns with its strong "America" marketing, at least from a manufacturing perspective. At the same time, Korean manufacturers appear to be rapidly shifting towards U.S. assembly, with the Hyundai Ioniq 5, Kia EV6, and Kia EV9 now all being made in Georgia. The EV6 features a notably high American parts content of 80%.
However, what has particularly caught my attention this year is the difference in average pricing based on the country of origin. The main takeaway is that affordable cars are disappearing, and taxes are accelerating their decline. The following two slides from the AMI presentation illustrate the situation (navigate between them using the arrows on the sides of the slide):
In summary, vehicles produced in America are generally more expensive. There are not many new cars available with an MSRP below $30,000 today, and of those that are, 91% are made overseas and subject to tariff pressures. Specifically, among 19 vehicles in the U.S. market priced under $35,000, only two are manufactured domestically. The data suggests that moving away from globalization in the automotive sector will lead to higher costs for consumers. The most concerning aspect is that no one is certain what the long-term logistics of car production will look like, which presents a significant challenge given that every company in this industry operates internationally.
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Can Americans Truly Afford to Purchase Cars Made in America?
Cars produced in American factories have the highest average price of any vehicles available in the market today.