US Car Imports by State: A $219B Market Under Tariff Threat
- At the start of 2025, the U.S. reinstated a 25% duty on numerous imported vehicles and automotive components originating from countries outside of North America, impacting the auto sector.
- These tariffs led consumers to pull ahead purchases to avoid extra costs, with 28% doing so and 20% seeking to "Buy American," according to a survey from May 31 to June 3.
- The tariffs also disrupted e-commerce, driving increased delivery costs, tighter return policies, and a rise in order returns, with almost three-quarters of executives reporting higher per-package delivery expenses.
- In 2024, U.S. car imports reached $219.5 billion, with California placing second at $38.3 billion—an 11.4% increase—and Texas third at $26 billion, marking an 18.3% decline. Analysts predict that if the tariffs on vehicles and parts from countries beyond North America remain, imports from those regions may decline by nearly three-quarters.
- These trends indicate a likely decrease in foreign vehicle imports, rising prices, and a possible shift of demand back to domestic production, compelling retailers to revisit their procurement and pricing approaches in order to maintain their market position.
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U.S. car imports by state: A $219 billion market under tariff threat
Tariffs are back in the news, and that has both American car buyers and automakers watching closely. In 2024, the U.S. imported $219.5 billion in passenger vehicles, up about 4.4% from the year before. As lawmakers weigh new duties on foreign-made cars and parts, the effects could hit hard, especially in top auto-importing states like Michigan, California, and Texas. Knowing which states import the most vehicles and which countries supply them …
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