How Much Would a 100% ‘Made in the USA’ Vehicle Cost? It’s Complicated

A white 2025 Ford Expedition SUV rolled off the assembly line at Ford’s Kentucky Truck Plant, built by American hands. But despite being assembled in the U.S., more than half of its key parts come from other countries — including 22% from Mexico. Even its engine is foreign-made.

This highlights a growing reality in the car industry: while vehicles may be made in America, many of their components are not. On average, a modern car has about 20,000 parts, sourced from up to 120 countries. Items like semiconductors, wiring, and certain metals are rarely made in the U.S., and it would take years and billions of dollars to change that.

Former President Donald Trump has pushed for more U.S.-built vehicles, backing tariffs and policies to encourage local production. But experts say that building a car with 100% American-made parts isn’t just hard — it’s almost impossible today. The closer a company gets to fully American content, the more the cost goes up. Adding just 10% more U.S. content can raise prices by thousands of dollars.

Ford CEO Jim Farley said it’s a tough balance. “We can move everything to the U.S., but if every Ford is $50,000, we’re not going to win as a company,” he explained. Even reaching 90% U.S.-made content would raise costs dramatically, and going beyond that is seen as unrealistic without massive investments.

Some cars, like Tesla’s Model 3 and the Honda Ridgeline, already reach about 75% U.S. and Canadian content. That’s seen as a more realistic goal. In fact, in 2007, many Ford and GM models had over 90% local content. But over the years, globalization and cost-saving moves have shifted production overseas.

Today, the average price of a new U.S.-assembled vehicle is over $53,000, compared to about $40,700 in Mexico. Trying to create a fully American car could raise the price even higher, pricing out many buyers.

Experts believe it would take 10 to 15 years and up to $100 billion to set up the infrastructure needed for 100% U.S.-made cars. Even then, the result might be low-volume, luxury vehicles that few can afford.

So while “Made in the USA” sounds like a powerful label, the truth is more complicated. For now, most cars on American roads will continue to be part U.S.-made and part global.