The United States, which imported 8 million cars in 2024, remains a crucial market for major auto-exporting regions, including Mexico, South Korea, and Europe.
For years, automakers and their suppliers have established operations in Mexico and Canada, benefiting from a free-trade zone with the U.S. According to the U.S. Department of Commerce, nearly 3 million cars and vans were exported from Mexico to the U.S. last year, while Canada accounted for 1.1 million, taking total to 8 million in 2024. Manufacturing supply chains are deeply interconnected, with components frequently crossing borders before final assembly, making any changes to customs duties—such as those announced by Donald Trump on Wednesday—highly complex.
Leading American automakers Ford, General Motors, and Stellantis (the parent company of Jeep and Chrysler) largely support tariffs on vehicle imports. However, on Thursday, they urged policymakers to maintain the “competitiveness” of North American auto production, which includes operations in Canada and Mexico.
Japan has long been a major car exporter to the U.S., traditionally ranking second. In 2024, Japanese manufacturers shipped 1.3 million vehicles, but South Korea overtook them with 1.4 million exports. On Monday, Hyundai confirmed plans to open a third factory in the U.S. Meanwhile, Toyota remains the best-selling car brand in the U.S., producing models like the Rav4 SUV and Corolla sedan at its 11 American plants. Despite this, nearly half of Toyota’s U.S. sales still come from imports, primarily from Japan, Mexico, and Canada. After 8 million imports, the Japanese government has pledged to respond appropriately to Trump’s tariff measures, given that vehicle exports are a cornerstone of its economy.
Europe also sees the U.S. as a vital market, exporting around 750,000 cars valued at €38.5 billion in 2024, according to the European Automobile Manufacturers Association. The U.S. is the EU’s largest car export destination, accounting for nearly a quarter of total auto exports and ranking as the second-largest export sector after pharmaceuticals. Germany leads European car exports, particularly luxury sedans, SUVs, and sports cars from Audi, Porsche, BMW, and Mercedes. The U.S. made up 23% of Mercedes’ 2024 revenue, and its American-made SUVs, which are exported globally, could be affected by potential European retaliatory measures.
Although the U.S. is a major vehicle manufacturer and consumer, it is not a leading exporter, shipping 1.4 million cars overseas in 2024, valued at $58 billion. Canada receives about half of these exports, followed by Germany, Mexico, and China. American car brands have struggled to gain a foothold in Europe—not due to the EU’s 10% tariffs but because their vehicle offerings have not aligned with European consumer preferences, particularly for smaller city cars. Ford is the only U.S. brand with a long-term presence in Europe, though it has faced challenges, including significant job cuts and financial support needed for its German operations, amounting to €4.4 billion in the coming years.
Tesla briefly succeeded in Europe with its Berlin-produced Model Y SUV, but sales have plummeted in recent months, partly due to Elon Musk’s close ties with Trump.
