The U.S. auto industry not only manufactures millions of vehicles and sustains a large portion of the workforce—it also fuels community development across America. Through trade and foreign investment, the U.S. has become a global leader in auto production.
Manufacturing Benefits
As reported by the American International Automobile Dealers Association and Autos Drive America, as of 2023, 4.9 million light vehicles were produced in the U.S. by automaker members of Autos Drive America’s, such as Honda, Hyundai, Toyota, Mercedes-Benz, Kia, Subaru, and BMW, among others. According to the Japan Automobile Manufacturers Association, since 1982, the cumulative manufacturing investment for Japanese-brand automakers has totaled $66.4 billion—an increase of over 900% compared to 1990 levels.
Export Benefits
In 2023 alone, around 762,500 U.S.-built vehicles were exported by international automakers, leading to $24 billion in vehicle exports for America. The top destinations include Canada (190,207 vehicles), the European Union (101,968), and Mexico (60,541).
Employment Benefits
The auto industry is an important contributor to the American workforce. With 24 manufacturing plants, 43 research & development (R&D) & design facilities, and 70 distribution centers across 27 states, Japan-based automakers offer direct employment to over 110,000 American workers. Since 1990, employment through Japanese automakers has grown by more than 287%. Additionally, 9,403 international nameplate automobile dealer franchises provide direct employment to 560,358 American workers, and support another 608,000 indirect jobs in 2023.
Investment Benefits
Over the past 60 years, international automakers and dealers have invested over $109 billion in U.S. operations. Beyond factories, Japanese automakers have invested in American communities through educational programs and partnerships. For example, Toyota deepened its partnership with the Plano ISD through a new donation to support STEM education, while Nissan and Vanderbilt offer a year-long project showcase where students and Nissan employees can work together to innovate. Moreover, Nissan distributed over 8 million meals to those in need, Mitsubishi Motors sponsored the Flying Monkey Marathon, and Honda planted 85,000 trees to enhance biodiversity near its Ohio operations.
Reasons to Continue Supporting Auto Trade
Engaging in trade with Japan-based automakers has been incredibly beneficial for Americans, as the industry supports 2.2 million jobs. In 2023, international automakers generated $37.9 billion in state and local tax receipts, $47.7 billion in federal tax receipts, and contributed $328 billion to America’s gross domestic product.
Tariffs pose a threat to America rather than an opportunity. Takashi Imamura, an executive officer at Japanese trading house Marubeni, explains that imposing tariffs on copper would increase costs for Americans. This would not be the first time that tariffs backfired. For instance, steel and aluminum tariffs during Trump’s first administration led to significant unintended consequences, including higher prices for Americans, reduced output, and fewer manufacturing jobs compared to projected employment levels without tariffs.
Undoubtedly, the auto industry is worth supporting. By eliminating, or at least lowering tariffs, the Trump Administration could ease the uncertainty among trading partners and investors, potentially paving the way for higher foreign direct investment levels and driving U.S. economic success.