The idea of an All-American Made Car captures the imagination—a vehicle born entirely from U.S. soil, built by American workers, and crafted with parts sourced exclusively within the nation’s borders. It’s a vision tied to economic patriotism, job creation, and industrial pride. But as a 2025 Ford Expedition rolled off the assembly line at Ford’s Kentucky Truck Plant, its window sticker revealed a more complex reality: only 42% of its parts were made in the U.S. or Canada, with 22% from Mexico and the rest from other global sources. This iconic SUV, assembled by American hands, underscores a critical truth about modern automotive manufacturing: creating a truly All-American Made Car is far more challenging than it seems.
The Global Web of Automotive Supply Chains
The automotive industry operates within a sprawling global supply chain, where parts for a single vehicle can originate from dozens of countries. A typical car contains around 20,000 individual components, from tiny screws to sophisticated semiconductors. For instance, the Ford Expedition’s 3.5-litre twin-turbocharged V-6 Ecoboost engine, a cornerstone of its performance, is engineered by Ford but includes components sourced internationally. According to S&P Global Mobility, parts for a vehicle may come from 50 to 120 countries, reflecting the interconnected nature of modern manufacturing.
This globalised system exists for practical reasons. Producing every component in the U.S. would require massive investments in new factories, mines, and processing facilities for materials like steel, aluminium, and rare metals such as platinum and palladium. Experts estimate that building such infrastructure could take a decade or more and cost billions. Even then, the economics don’t add up. Martin French, a supplier executive at Berylls Strategy Advisors, notes that some parts, like small fasteners or labor-intensive wiring harnesses, are significantly cheaper to produce abroad, even with tariffs factored in.
The Ford F-150, a sibling to the Expedition, is another example. Assembled exclusively in the U.S., it still relies on roughly 2,700 main billable parts, many of which are sourced globally. The dream of an All-American Made Car collides with the reality of cost and scale, making 100% domestic production a distant goal.
The Push for an All-American Made Car
Recent policy moves, particularly under President Donald Trump’s administration, have reignited the conversation around domestic manufacturing. Trump’s 25% tariffs on imported vehicles and parts aim to pressure automakers to localize production and create jobs in the U.S. The Kentucky Truck Plant, employing over 9,000 workers to build vehicles like the Expedition and F-Series trucks, is the kind of facility these policies champion. However, the tariffs also highlight the gap between ambition and feasibility.
Ford CEO Jim Farley emphasised this challenge on CNBC’s Squawk Box, stating that 15% to 20% of vehicle parts, such as semiconductors and basic fasteners, are nearly impossible to source domestically at present. These components, often commoditized and produced in Asia or Mexico, are critical to keeping vehicle costs manageable. Farley warned that a fully All-American Made Car could push prices to levels—like $50,000 for a Ford—that would alienate consumers and hurt demand.
Analysts echo this sentiment. Mark Wakefield of AlixPartners explains that achieving even 90% U.S. and Canadian content would be costly, and reaching 95% or higher would be “quantumly more expensive.” The final 5% to 10% of domestic sourcing, involving raw materials and specialised components, could take over a decade to establish and still not be economically viable. For now, the vision of an All-American Made Car remains a logistical and financial hurdle.
The Cost of Going All-American
The economic implications of pursuing an All-American Made Car are stark. The average new vehicle in the U.S. costs around $48,000, with materials and parts accounting for roughly $30,000 of that price. Sourcing more components domestically could add thousands of dollars to production costs. One expert estimated that moving from 70% to 75% U.S./Canadian content could increase costs by $5,000, with another $5,000 to $10,000 needed to reach 90%. Beyond that, costs skyrocket further, potentially pricing vehicles out of reach for many buyers.
Cars.com data highlights the U.S. as the most expensive country for vehicle manufacturing, with U.S.-assembled vehicles averaging over $53,200, compared to $40,700 in Mexico or $46,148 in Canada. These cost disparities drive automakers to source parts globally, balancing quality, affordability, and profitability. A hypothetical All-American Made Car produced at scale could cost upwards of $300,000 to $400,000, akin to a low-volume luxury vehicle like a Ferrari, which still relies on some non-Italian parts for components like airbags and tires.
General Motors and Ford have projected significant financial hits from tariffs, with GM estimating a $4-5 billion loss in 2025 profits and Ford anticipating up to a 25% reduction in annual net profit. These figures underscore the delicate balance automakers must strike. As one industry executive noted anonymously, building a profitable All-American Made Car is “unrealistic” under current conditions, as the added costs would erode margins and force price hikes that could stifle sales.
What’s Realistic for American Manufacturing?
While a 100% All-American Made Car may be out of reach, achieving 75% U.S. and Canadian content is a more attainable goal. Vehicles like the Kia EV6, certain Tesla Model 3 variants, and the Honda Ridgeline AWD Trail Sport already meet this threshold for the 2025 model year, according to National Highway Traffic Safety Administration (NHTSA) data. Nearly 20 other vehicles are at 70% or higher, showing progress toward greater domestic sourcing.
However, even this level of localisation requires significant investment. Automakers and suppliers would need to spend billions to build new facilities or retool existing ones. The trend toward globalisation, accelerated by the Great Recession and technological advancements, has reduced U.S./Canadian content over time. In 2007, vehicles like the Ford Expedition boasted 95% domestic content, but today, the top 10 vehicles average 63.6% to 69.2%, per Cars.com’s American-Made Index.
This index evaluates vehicles based on assembly location, parts content, engine and transmission origins, and U.S. manufacturing workforce. Notably, no Ford or GM vehicles made the top 10 in 2024, with Tesla, Honda, and Volkswagen dominating. The 2025 Ford Expedition is expected to score higher than its 2024 ranking of 78th, thanks to increased domestic content, but it still falls short of being a fully All-American Made Car.
The Role of Policy and Consumer Demand
The push for an All-American Made Car is not just about economics—it’s also a cultural and political statement. Trump’s tariffs and rhetoric, amplified by advisors like Peter Navarro and Commerce Secretary Howard Lutnick, frame domestic manufacturing as a path to economic sovereignty. Yet, the complexity of global supply chains and the high cost of reshoring production challenge this narrative. The American Automobile Labelling Act of 1992 requires automakers to report U.S. and Canadian content combined, making it difficult to pinpoint purely U.S.-sourced parts. For example, the 2024 Toyota RAV4, built in Canada, has 70% U.S./Canadian content but isn’t assembled in the U.S.
Consumer interest in American-made vehicles is rising, as evidenced by increased traffic to Cars.com’s American-Made Index in 2025. Patrick Masterson, the index’s lead researcher, notes that people are more concerned than ever about where their cars are made, likely spurred by tariff policies and national pride. However, even vehicles assembled in the U.S. can have as little as 1% domestic parts, highlighting the disconnect between assembly and sourcing.
Potential policy solutions, like tax breaks or consumer incentives similar to the $7,500 electric vehicle credit, could offset the costs of domestic production. However, such measures would need to be carefully designed to avoid further inflating vehicle prices or straining automakers’ finances. Without these supports, the pursuit of an All-American Made Car risks burdening consumers and companies alike.
The Bill of Materials: The Heart of the Challenge
At the core of every vehicle is its bill of materials (BOM), a detailed blueprint dictating which components are used and where they come from. The BOM is a non-negotiable reality for automakers, shaping everything from engineering to cost. For an All-American Made Car, the BOM would need to exclude all foreign-sourced parts, a nearly impossible feat without compromising affordability or quality. Even exotic hypercars, built in low volumes, rely on global suppliers for critical components, underscoring the universal challenge.
The BOM’s influence is evident in the smallest details. Touring an assembly line reveals bins of screws, bolts, and clips—seemingly insignificant parts that are rarely made in the U.S. due to cost. These components, combined with high-tech parts like semiconductors (costing around $5,000 per vehicle), form the backbone of a car’s construction. Reshoring their production would require not only new factories but also a rethinking of the entire supply chain, from raw material extraction to final assembly.
Looking Ahead: Balancing Ideals and Reality
The vision of an All-American Made Car is compelling but elusive. While tariffs and policy incentives may encourage more domestic production, the global nature of automotive manufacturing means that complete self-sufficiency is unlikely in the near term. Instead, a balanced approach—targeting 75% to 80% U.S. and Canadian content while maintaining affordability—offers a practical path forward. Vehicles like the Tesla Model 3 and Honda Ridgeline show that high domestic content is achievable, but scaling this across the industry will take time, investment, and innovation.
For now, the Ford Expedition rolling off the Kentucky assembly line represents both the pride and the complexity of American manufacturing. It’s a symbol of what’s possible—and a reminder of the limits. As automakers navigate tariffs, consumer expectations, and global supply chains, the journey toward an All-American Made Car will remain a blend of ambition, pragmatism, and economic reality.