U.S. auto trade deficit hits $128 billion as imports surge in 2025

The U.S. automobile trade deficit reached $128 billion in 2025, with imports far exceeding exports. While the country maintains a positive trade balance with many nations, large shortfalls persist with key partners like Mexico, Japan, and Germany. New tariffs on foreign-made vehicles could now push up costs for manufacturers relying on imports.

In 2025, the U.S. exported $53 billion worth of passenger vehicles but imported $181 billion. The biggest deficits were with Mexico ($45 billion), Japan ($35 billion), South Korea ($29 billion), Germany ($13 billion), and Canada ($12 billion).

Domestic production remained strong, with GM leading in U.S.-assembled vehicle sales, followed by Ford, Toyota, and Honda. Yet many of these same companies also produced heavily in Mexico. Ford, GM, and Stellantis were the top three U.S. automakers manufacturing there, turning out models like Ford's compact wagons at the San Luis Potosí plant. GM operated in Estado de Mexico, while Stellantis shared facilities in the region.

New tariffs may now hit companies dependent on imported parts or foreign-assembled cars. Tesla led in domestic content, with 84% of its vehicles made from U.S. materials. Honda followed at 56%, then Ford (55%) and GM (53%).

The U.S. auto industry faces rising costs as tariffs target foreign-made vehicles and components. With trade deficits concentrated in a few major markets, manufacturers may need to adjust supply chains. The shift could impact production strategies for both domestic and international brands operating in the U.S.