Mexico and Canada were the second and fifth largest countries of origin for new vehicles sold in the U.S. in 2024.
US President Donald Trump's proposed tariffs on vehicles manufactured in China, Canada and Mexico have the potential to affect 20% of car sales in that country, according to a report by Jato Dynamics.
Just days before the end of the pause that Trump has put on the imposition of these tariffs on imports from Canada and Mexico, the company in charge of analyzing the automotive sector for Europe and the world highlights that sales of new light vehicles in the United States totaled 16.1 million units, of which 61% were locally manufactured.
The tariffs, which have gone ahead in the case of China, where the United States imposed 10% tariffs on imported products from that country, would have a significant impact on the US auto industry, especially considering that the volume of vehicles originating from these three countries increased by 7% annually in the last year, reaching 2.9 million units.
"While the situation is constantly evolving, the imposition of tariffs on the United States' closest trading partners will have a major impact on the North American automotive industry, affecting the millions of cars that enter the country from markets such as Canada, China and Mexico every year," said Felipe Muñoz, global analyst at Jato Dynamics.
According to data from the data analytics firm, these three countries accounted for 18% of total new vehicle sales in the United States in 2024.
MEXICO, A CRITICAL CENTER OF PRODUCTION AND EXPORT
In this regard, Jato Dynamics explains that, as Mexico is the second largest country of origin of new vehicles sold in the United States and an important production and export center for many automobile manufacturers, sales of new light vehicles manufactured in this country totaled 2.19 million units in 2024 in the US, that is, 14% of the total market.
Sales volumes rose 13% year-on-year, compared with 1.7% growth for US-made vehicles, reflecting the importance of the United States to the region's automotive industry as a whole.
The Latin American nation is also the largest country of origin for cars sold by the Volkswagen Group in the United States, accounting for nearly half (44%) of its total sales in the country in 2024.
Similarly, Mexico was the second-largest country of origin for vehicles sold in the United States by Stellantis, Nissan, Mazda, Honda and Ford.
"With four of its five best-selling models in the United States last year manufactured in Mexican plants, the Volkswagen Group is the car manufacturer most exposed to the imposition of tariffs on Mexican products," Muñoz said.
CANADIAN-MADE CARS ARE LOSING TRACTION
On the other hand, the company highlights that the importance of Mexico for automobile manufacturers operating in the United States contrasts "markedly with the waning influence of Canada," which was the fifth largest country of origin of cars sold in the United States in 2024.
"Last year, more cars were sold in the United States from the European Union than from Canada. It is the country of origin of a limited range of models, all of which are sold in the United States," says Muñoz.
Last year, Canadian-made cars accounted for 18% of Toyota's total U.S. sales, followed by Stellantis at 14%. Only 5% of Ford vehicles sold in the U.S. last year came from a Canadian plant.
THE ROLE OF THE EUROPEAN UNION
In the face of Trump's threat of tariffs on EU imports, Jato Dynamics recalls that last year, sales of light passenger vehicles in the United States from European Union plants totaled more than 820,000 units, more than the total sales of Canadian-made cars in the country.
German carmakers – Volkswagen Group, Mercedes-Benz and BMW Group – accounted for 73% of this total. While Mexico was the main country of origin for Volkswagen Group vehicles, the EU is the main country of origin for Mercedes-Benz vehicles sold in the United States.
Meanwhile, Chinese group Geely -- owner of Volvo Cars -- sold 135,300 new vehicles in the US last year, of which 110,000 came from the EU.
On the other hand, 56,800 Chinese-made vehicles were sold in the United States in 2024, which represents a market share of 0.35%. "The United States is imposing severe restrictions on vehicles manufactured in China, despite the marginal role that the country plays in the American automotive industry," Muñoz points out.
"While it is difficult to predict what the Trump administration will do next from a trade perspective, the measures taken after the first month in office are a sign of things to come. Importing cars into the United States will become more difficult across the board, and the European Union must be prepared for future trade restrictions," Muñoz concludes.
