President Trump has implemented new auto tariffs, and they are making waves across the automobile industry. Starting now, there’s a hefty 25% tariff on all cars not made in the good ol’ U.S. of A. But before anyone celebrates, it’s important to realize that no car is truly 100% made in the U.S. even a popular vehicle like the Ford F-150. Underneath the sleek exterior, it has thousands of parts, and those parts come from over 24 different countries. This includes neighbors like Canada and Mexico, as well as farther places like Romania. So, getting things to “Made in America” status isn’t as simple as waving a magic wand—imagine trying to move the entire state of Maine to Wyoming. Sure, it’s theoretically possible, but logistically, it’s a nightmare!

Let’s peel back the layers on what this all means. While a significant portion of cars sold in the U.S. are made right here, they’re still reliant on parts produced abroad. When the new tariffs come into play, it affects not just foreign-made cars, but also many “U.S.-made” vehicles because of those foreign parts lurking in their assembly. For instance, some essential components of the Ford F-150 like half shafts come from Canada, and tires roll in from South Korea. Consequently, if these parts are imported, they will be subject to the 25% tariff—which complicates things immensely.

To add to the mess, producing all the parts within the United States isn’t a snap of the fingers. Take transmissions as an example; they require multiple borders to cross thanks to current manufacturing processes. Picture this: it takes seven border crossings just for a single transmission to find its way into cars sold in this country. If Trump’s tariffs kick in, those crossings will incur fees that add to the overall cost of the vehicle. Even if manufacturers decided to move operations to the U.S., they would still be hit by tariffs on necessary raw materials like steel and aluminum.

According to experts in the automotive field, the final tally could be staggering. Estimates suggest that producing a car in the U.S. might rack up an additional $3,000 in costs from tariffs owed to Canada and Mexico. Throw in another $3,000 for customs on imported auto parts and an added $400 due to tariffs on foreign steel and aluminum, and suddenly cars could become a whole lot more expensive. This isn’t just a minor inconvenience; it could halt production for several vehicles altogether as manufacturers scramble to align themselves with the new tariff structure.

Now, despite the interest in moving production back to the U.S., industry analysts caution that any change will take a significant amount of time. Even moving a foreign-made part to an American supplier can stretch over months due to the complexities involved. Predictably, this could lead to higher car prices for consumers. With car prices already elevated, this could douse the demand for new vehicles and snuff out production rates. The auto industry finds itself in a delicate dance, one where signals and clarity on tariff implications are desperately awaited while they navigate these choppy waters. It appears President Trump’s noble aim of encouraging more cars to be made in the U.S. may end up costing consumers quite a bit more at the checkout counter.