With the imposition of 25% tariffs on US car imports, data from Jato Dynamics highlights the exposure of various carmakers to the new trade policy.
In 2024, the US saw the sale of 16.1 million new cars, of which approximately 6.3 million were imported from markets including Mexico, Canada, the European Union, the UK, Japan, and Korea.
Starting last week, these imports are subject to the new tariffs, with an additional 25% levy on imported car parts to take effect on May 3. Though the 25% tariff is applied universally, its impact will vary significantly among car manufacturers.
Detroit’s “Big Three” – General Motors, Ford, and Stellantis – sold around 1.85 million imported light vehicles in the US last year, making up 13% of their global sales.
In comparison, Japan’s largest brands – Toyota, Honda, and Nissan – collectively sold 17.9 million vehicles globally in 2024, with 1.53 million of those imported to the US, accounting for 9% of their total global sales. Germany’s Volkswagen Group, BMW Group, and Mercedes-Benz collectively saw 7% of their global sales come from the US market.
While the tariff is designed to help boost domestic carmakers, it will also have negative repercussions for them. Due to a more limited global reach than their Japanese and European counterparts, US manufacturers rely heavily on domestic sales. As a result, the new tariffs on cars imported from countries like Mexico, Canada, and Korea will be particularly felt by these companies.
Brands most affected
While few manufacturers will emerge unscathed, certain brands are more exposed to the tariffs than others. Mazda, Subaru, and General Motors are particularly reliant on the US market.
In 2024, Mazda sold 1.28 million vehicles globally, with 343,000 of them imported into the US. Subaru’s US sales accounted for a significant 71% of its global volume, although imports still made up 26% of its total sales. General Motors, heavily dependent on the US market, imported 18% of its total global sales in 2024, the highest proportion among the top five global automakers.
Among premium brands, Jaguar Land Rover (JLR) faces notable exposure. One in four Land Rover vehicles (24%) were imported to the US in 2024, the third highest after Infiniti (41%) and Lexus (32%). As a result, JLR has suspended US shipments while it assesses the impact of the new tariffs on UK-made vehicles.
Volkswagen faces challenges
In 2024, the US accounted for less than 10% of Volkswagen Group’s global sales, providing it with a degree of protection compared to other manufacturers. However, Jato Dynamics points out that 80% of its US sales come from vehicles made abroad, meaning it still faces challenges under the new tariffs.
Felipe Munoz, global analyst at Jato Dynamics, remarked, “The US is a crucial market for 14 of the 18 non-Chinese global carmakers. While Volkswagen’s overall exposure is lower, the brand will need to maintain its presence in the US to retain its global status.”
Munoz added: “It’s likely that carmakers such as Volvo, Hyundai-Kia, Mercedes-Benz, BMW, Stellantis, Toyota, Nissan, Subaru, and General Motors will have to ramp up production in the US in response to these new trade terms. The US market is too significant to ignore.”