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Home » Global Trade & Economics » Made in America? Look Under the Hood

Made in America? Look Under the Hood

A FORD-F150-LIGHTNING-EV- CHARGES AT A STATION
Photo: iStock/RoschetzkyIstockPhoto
December 9, 2024
SupplyChainBrain

The U.S. auto industry could suffer under president-elect Donald Trump’s proposed import tariffs, as the definition of what actually constitutes “Made in America” is revealed to be complicated by decades of supply chain diversification.

For example, says The Guardian, the Ford F-150 pickup truck, the best-selling vehicle in the U.S. for more than 40 years, has only 24% of its components made in the U.S. according to analysis of federal data from Cars.com.

Trump has proposed tariffs of between 60% and 100% on Chinese goods, and a tax of between 10% and 20% on every product imported from all other U.S. trading partners, though very few details are available. During an October rally, he promised as much as a 500% tax on cars made in Mexico.

The F-150’s price would almost certainly soar under the proposed tariff regimen, and it would take many years to completely onshore its supply chain.

Other top-selling vehicles in the U.S. are also sourced from around the globe.

In a wide-ranging interview with NBC’s “Meet the Press” that aired December 8, Trump said he can’t guarantee that his promised tariffs on key U.S. foreign trade partners won’t raise prices for American consumers. 

The industry analyst’s American Made Index (AMI) ranks how “American” 100 of the top vehicles sold in the U.S. are, based on where parts are made as reported under the American Automobile Labeling Act, the location of vehicle assembly, U.S. factory employment relative to vehicle production, and engine and transmission sourcing.

The F-150 and its electric sibling, the F-150 Lightning, ranked 58th and 56th, respectively, in 2024.

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