Where is that car made?
Cars are made of literally thousands of parts, which are then assembled into sub-assemblies (transmissions, engines, computer systems, exhaust systems, etc.). Manufacturers will source parts and subassemblies to anywhere in the world where they can get the best price for the given specifications.
For decades, American car manufacturers have used the efficient transportation options available in North America to seamlessly integrate Canadian, U.S., and Mexicanparts, subassembly, and assembly. Some parts and subassemblies cross borders two or even three times before a car is finally ready for sale. Very few cars of North American origin have their entire list of parts and their final assembly done in the U.S. Since the passage of NAFTA, which reduced tariffs to essentially zero on the transfer of parts and cars across borders, economists estimate that the price of a new car has been reduced from about $250 to over $700 per car, depending upon the car. If tariffs are reintroduced, car prices would be expected to rise by that same amount. This gives car buyers less money to spend on birthday presents, housing, restaurants, movies, shoes, and anything else they might want. With about 15 million cars sold per year, this is a tax on consumers of about $7.5 billion dollars. That’s a $7.5 billion reduction in spending in all those other industries, so restaurants, movies, sellers of birthday presents, etc., will all have falling sales, and will lay off workers. For some buyers, an extra $700 for a car will make them put off buying a new car, and will reduce car sales, causing layoffs in auto manufacturing, sales, and service.
Here’s a partial list of cars that have at least partial sourcing of parts, or assembly, in Mexico or Canada:
Ford Fusion, Fiesta, Lincoln MKZ assembled in Mexico
Ford Edge, Flex, Lincoln MKX and MKT assembled in Canada
Ford Focus: assembled in U.S. but transmission from Germany, and host of parts from Canada
Ford F-series pickup: 15% of parts from Mexico
Ford Mustang: transmission in some models come from China
Chevy and GM are used interchangeably below:
Chevy Camaro, Equinox, Terrain, and Impala are assembled in Canada
Chevy Cadillac SRX and Escalade EXT, Silverado, and Sierra assembled in Mexico
Chevy Corvette: various engines from Canada and transmissions from Mexico
Chevy Silverado: various transmissions from Mexico
Cadillac CTS: various engines from Canada or Mexico, and transmissions from Mexico
Chrysler: 300, Dodge Challenger and Charger are assembled in Canada
Chrysler, Dodge, and Jeep vehicles average 20 percent of parts from Mexico
Jeep Renegade: assembled in Italy