The Word “Tariffs” is Becoming an Explosive Buzzword
And for a good reason. After decades of reliable trade agreements between Mexico, Canada, and Europe, President Trump is imposing tariffs on anything imported. That includes the cars, trucks, SUVs, and EVs from automakers we know and love.
And when it comes to cars, there’s no such thing as purely made in America. Even if a car is assembled or manufactured in America, every car you see on your way to Starbucks is comprised of some foreign parts, whether it’s the transmission, suspension parts, electronics, wiring, tires, wheels, or more.
If you’re shopping for a car that is safe against tariffs, you’re in luck. The American-Made Index from American University’s Kogod School of Business ranks 374 cars and trucks sold in the US by the amount of US-made components used. Here are some of the most popular yet tariff-prone cars and their less tariffed competitors.
This story is 100% human-researched and written based on actual first-person knowledge, extensive experience, and expertise on the subject of cars and trucks.
What Defines an “American” Car?
Reading “American car,” you might think of the Big Three: Ford, General Motors, and Stellantis, the parent company of classic American brands like Jeep, Dodge, Ram, and Chrysler. However, according to the current tariff rule that prioritizes products made in America, the true definition of an American car becomes a lot more complicated.
That’s because the tariffs are levied on foreign-made components imported into the US and used to build cars—think transmissions, engines, wheels, tires, and more—and any American-brand cars assembled outside the US and then imported for sale. Thanks to trade agreements and manufacturing strategies designed to keep costs down, this manufacturing process impacts car brands across the industry.
Picking Apart Tariff Totals: What Gets Taxed?
In fact, a car built in America doesn’t bleed red, white, and blue unless everything it contains is made in America. So, while the Ford Explorer is built in Chicago, 50% of its components (like the engine, transmission, and electronics) may be internationally sourced.
But it gets more complicated. If 50% of the components represent 75% of the cost of the Explorer, the tariffs will be lofty. But if the cost of that 50% represents lower-cost items are less, the tariff amount is less.
Think of it like this: You buy dinner at the grocery store: A salad, two potatoes, a package of strawberries, and a filet mignon for $50. The cost of the steak is $40, while the salad, potatoes, and strawberries add up to $10. That one item—filet mignon—accounted for 80% of your purchase, while the other items were only 20% of the bill.
That’s how tariffs will be factored into the price of a new car. Lucky for Explorer buyers, many of its components are American-made, including one of the most expensive, the engine.
In looking beneath the surface of cars built or assembled in the US, here are some of the most popular cars and lower-taxed options that may make for a sensible swap.
Thinking Hyundai Palisade? Shop a Honda Pilot For the Anti-Tariff Win
Honda’s Lincoln, Alabama assembly plant is where the brand’s most popular models are built, including the Honda Pilot and the newly redesigned Passport. According to the study, the Passport is 76% American, meaning that a majority of the company’s workforce and vehicle components are made on American soil.
The 3.5-liter V6 under the hood is made in America, as well as the transmission, which is built in Georgia. The company may be from Japan, but the Passport fits right in with American families, with plenty of room, an easily lovable driving feel, intuitive technology, and a family-friendly price point, ranging from $46,200 to $55,100.
READ MORE: I Want the 2024 Honda Pilot Trailsport. Here’s Why
You Want a Nissan Z? Shop a Ford Mustang GT Instead
Don’t get us wrong; we love the Nissan Z. People will stop and chat you up; its design is classic and beautiful. And it’s built in Japan, so it’ll be subject to tariffs that the Ford Mustang GT, which contains about 80% US-sourced materials, is not.
Aching for a Ford Bronco? Jeep Wrangler May Be a Better Option
Until now, the Ford Bronco was a great alternative to the Jeep Wrangler: Equally as rugged and capable, but offering an alternative universe of off-roading prowess. However, the Ford Bronco, while being assembled in the US, contains only 59% of US-sourced components, while the Wrangler is built from 76% US-made materials.
Therefore, the Wrangler is less susceptible to import tariffs.
READ MORE: I Went Off-Roading in the New 2024 Jeep Wrangler, and It Blew My Mind
Need a Mid-Size Truck? There are Good Options Here, Too
We love the Ford Maverick—it’s an incredibly capable, spunky, and fun-to-drive truck that has a big personality. The hybridized version is excellent too, offering drivers an efficient way to haul simple things like feed bags, bikes, camping gear, or tall plants. It’s also fairly priced for everything that comes with it, ranging from $28,590 to $41,945, depending on whether or not you opt for the hybrid or all-wheel drive.
However, unlike its larger F-Series siblings, it’s not made in America. The small-but-mighty pickup is actually built in Mexico. The 2.0-liter EcoBoost and 2.5-liter hybrid engine are made in America, but because it isn’t built in the States, Ford has to pay a 25% tariff on the Maverick.
This is where Honda again may win on price hikes with a mid-sized truck that offers similar features, a higher towing rating, similar pricing, but won’t face tariffs: the Honda Ridgeline.
Honda Ridgeline Most Resists Import Tariffs
The Honda Ridgeline is almost as American as apple pie, and that’s thanks to being built in Alabama and being made of the same 3.5-liter V6 that’s under the hood of the Passport, made in the same Alabama plant. The transmission is made in South Carolina.
Honda claims the Ridgeline scores a domestic score of 100% because it’s exclusively produced in America, uses American-made parts, and has a largely American workforce. Therefore, the Honda Ridgeline might be the most American truck… Ever.
The Honda Ridgeline is a tad bigger and has a larger engine than the Maverick, so it shouldn’t be shocking to learn that the towing rating is higher by 1,000 lbs (4,000 for the Ford vs. 5,000 for the Honda). A bigger truck means a bigger price tag, too. The Ridgeline ranges from $41,600 to $48,200, depending on trim and options.
Hoping for a Toyota Tacoma? You May Be In Luck
The Toyota Tacoma comes from one of two plants: one in Texas and the other in Mexico. According to Toyota, the TRD Pro Series of Tacoma is built in Mexico, though all Tacoma trims used to be primarily from Texas. Funnily enough, the engine and transmission come from Alabama, but final assembly is in Mexico.
Therefore, the Tacoma faces tariffs, so if you’re skeptical of paying extra for an already fairly expensive truck, the Honda Ridgeline may be worth a look for medium-duty tasks.
READ MORE: The 2024 Honda Ridgeline Trailsport Navigates All the Terrains of Life
Love the Nissan Armada? Shop the Chevy Tahoe For Now
Both full-sized SUVs have a lot to offer: a plethora of passenger comfort, tons of cargo space, a plush and comfortable ride, and a fairly comfortable third row. Even without the tariffs, the Nissan Armada‘s pricing can be tough, as it starts at $57,520 and goes close to $76,900 at the top end. Being made in Japan, the already-high price may climb higher, making it a tougher pill to swallow.
That’s why we recommend the Chevy Tahoe as an alternative—it may not be as luxurious as the Armada, but it’s pretty darn close. It has all the key features of the Nissan at a similar price point, as it’s built in Texas. The Tahoe starts at $59,000 and tops out at $83,895 for the High Country.
However, it’s important to remember that if Nissan forces the import fees on the customer, the Nissan may end up being just as pricey or more.
VW ID.4 Or Tesla Y? Both Are Great Options with Low Tariffs
Yes, Tesla gets the title as the most American-made car, taking the top 6 spots as “Most.” However, 5 of those 6 are their top-of-the-line models and carry a larger price tag. The Model Y lands at #3 on the list with 85% US-made components. If a Tesla just isn’t for you, the VW ID. 4 comes in at #14 on the list with 75.5% of US-made parts, thanks to VW’s shift to production of the EV in the US.
Another great option is the Hyundai IONIQ 5, which shifted to all-US production this year, including the batteries, which are made in the US.
READ MORE: Can an Electric Car Work as a Family Car? The Car Mom Puts the VW ID.4 to the Test
Made in the USA: Jeep, Rivian, Lucid
Even though full specs are not available on all models, Jeep Grand Cherokees proudly wear an American Flag next to their nameplates; Lucid manufactures its models in Arizona, and Rivians are built in Normal, IL. Rivian’s headquarters are in California, and many EV components come from Georgia and Illinois.
Lucid’s workforce is largely American, and is headquartered in California, too. Jeep, having roots in the American military, does manufacture some SUVs here, too. The Jeep Gladiator was on the list of one of the more American-made cars, along with the Wrangler, Wrangler 4xe, and Wagoneer/Grand Wagoneer.
Before walking into a dealership, we hope we helped you decide which cars may cost less as we navigate tariffs.
