Complex Global Supply Chains
Even when a vehicle is assembled entirely in the U.S., many of its parts and materials come from abroad. For example, the 2025 Ford Expedition built in Kentucky is labeled only 58% foreign-made, with 22% of that coming from Mexico. Key components—like its 3.5‑liter twin‑turbocharged engine—are still produced overseas.
Rising Costs of Full U.S. Sourcing
Industry experts warn that moving to 100% U.S. parts would dramatically increase production costs. Steel, aluminum, and semiconductor plants are scarce in America. Building new mines or factories for raw materials like platinum and palladium could take a decade and billions of dollars.
Tariffs vs. Feasibility
President Trump’s 25% tariffs on imports pushed automakers to localize supply chains. Yet even with tariffs, some parts remain cheaper to import. Ford CEO Jim Farley noted that making every part in the U.S. could push vehicle prices too high for most buyers.
The “Last Mile” Cost Surge
Consultants estimate that raising U.S./Canadian content from 70% to 80% could add $5,000 per vehicle. Hitting 90% might tack on another $5,000–$10,000, with costs skyrocketing as you approach 100%.
Legal Labeling Limits
Automakers must report combined U.S. and Canadian content under federal law, not purely U.S. parts. This makes it even harder to track true “Made in USA” status.
Achievable Targets
Experts say a 75% U.S./Canada parts threshold is realistic. A few current models meet this standard. However, reaching it broadly would still require billions in new investments and significant reshoring efforts.
Why 100% Remains a Stretch
- Scale and Speed: Building new processing plants and mines takes years and huge capital.
- Consumer Prices: Adding up to $20,000 per vehicle risks pricing buyers out of the market.
- Industry Examples: Even luxury brands and low-volume startups face these hurdles; only ultra‑expensive, niche vehicles could manage full domestic sourcing.
In summary, while more “American-made” cars are on the road, a truly 100% U.S. vehicle remains a costly, long-term project rather than an immediate reality.
