President Trump said that although he gave US automakers “some leeway” with tariffs, he expects automakers to fully bring back domestic auto manufacturing in the next year.
“All of the manufacturers will build their parts here too,” Trump told reporters in the Oval Office in response to a question about tariffs affecting companies like Tesla (TSLA).
Of note, Tesla is considered to have the highest percentage of “Made in America” parts, though no car is 100% made in the US. Tesla’s long-range Model Y and Model 3 vehicles contain 87.5% “total domestic content,” according to a 2024 study by Kelley Blue Book.
“It used to bother me, [automakers] make a part in Canada, a part in Mexico, a part in Europe, and sent all over the place, and nobody knew what the hell was happening,” Trump continued. “I think you build a car, make it in America. … over the next year, they’ve got to have the whole thing built in America.”
The US imposed auto tariffs of 25% on May 3, but the Trump administration carved out an exemption for some auto parts tariffs, stating that they would not be stacked on top of other tariffs. The auto industry has lobbied hard for tariff exemptions since Trump took office.
While many of Trump’s most extreme tariffs are being challenged in court, those cases do not affect auto tariffs, which were implemented using a separate law.
