How Much Would a 100% ‘Made in the USA’ Vehicle Cost? Experts Say It’s Complicated — and Costly

As U.S. President Donald Trump pushes automakers to build more vehicles with American-made parts, industry experts warn that creating a truly 100% “Made in the USA” vehicle is not only complicated — it’s economically unfeasible for now.

Take the 2025 Ford Expedition, assembled by American workers at Ford’s Kentucky Truck Plant. Though built entirely in the U.S., the vehicle still relies on a global supply chain. Roughly 58% of its parts are sourced from outside the United States — including 22% from Mexico. Even its signature 3.5-liter twin-turbo V-6 Ecoboost engine is not fully U.S.-sourced.

“We can move everything to the U.S., but if every Ford is $50,000, we’re not going to win as a company,” said Ford CEO Jim Farley on CNBC’s Squawk Box. “That’s a balancing act every automaker will have to do — even the most American company.”

Why 100% U.S.-Made Isn’t Feasible (Yet)

Since Trump implemented a 25% tariff on imported vehicles and components, carmakers have made a public push to localize production. But experts say even with protectionist policies, many parts are still cheaper and more readily available abroad.

“Some parts that have been offshored will still be cheaper to manufacture abroad at scale — even with tariffs,” said Martin French, partner at Berylls Strategy Advisors USA.

Critical inputs like steel, aluminum, semiconductors, and rare materials such as platinum and palladium are either unavailable or insufficiently produced in the U.S. Domestic facilities to process them would take years — or decades — to develop.

Even reaching 75% domestic content requires significant investment. According to industry data, a new U.S.-made vehicle includes an average of 20,000 parts, many originating from 50 to 120 countries.

The Price Tag: Thousands More — Per Vehicle

Multiple automotive analysts estimate that achieving just 80–90% domestic content could raise vehicle costs by $10,000 to $15,000, depending on the model. Moving closer to full localization could push the price even higher.

A new car today already averages around $48,000, according to Cox Automotive. A shift to 100% domestic content — including materials, components, and assembly — could push that figure to $60,000 or more, pricing many consumers out of the market.

“The cost gets quantumly more the closer you get to 100%,” said Mark Wakefield, a partner at AlixPartners. “Getting past 95% would be extremely expensive and could take 10 to 15 years with $100 billion in investment.”

Past vs Present: A Shift in Content

In the 2007 model year, many Ford and GM vehicles had more than 90% U.S./Canadian content, but that has changed dramatically post-globalization and the 2008 financial crisis.

Today, only a handful of vehicles — including select models from Tesla, Kia, and Honda — exceed 75% domestic content, according to National Highway Traffic Safety Administration (NHTSA) and Cars.com’s American-Made Index.

In contrast, many imported luxury brands, especially from Germany and Japan, feature little to no U.S. content, with some reporting as low as 1%.

What’s Realistic? 75% May Be the Sweet Spot

Most experts agree that aiming for 75% U.S./Canada content is more realistic and avoids forcing “uneconomic decisions.” But even that benchmark would require billions in new supplier investments and overhauls in sourcing strategies.

And despite Trump’s pressure, auto executives caution that without major federal incentives — such as consumer tax breaks or manufacturing subsidies — achieving higher thresholds could weaken industry competitiveness.

“You could theoretically build a $300,000 vehicle that’s all-American,” said Wakefield. “But to do it at scale would take time, innovation, and deep pockets.”