You’re sitting at a red light in a suburb outside Chicago or maybe Austin. You look to your left and see a Toyota RAV4. To your right, there’s a BMW 3-series. Directly in front of you sits a Ford F-150. If you asked the average person which of those is an import, they’d probably point to the Toyota or the BMW.
They’d be half wrong. Or maybe entirely wrong. It depends on which week of the year you ask and which specific factory the VIN traces back to.
The question of does the us import cars isn't a simple yes or no. It’s a massive, multi-billion dollar logistical nightmare that involves international treaties, weird tax loopholes like the "Chicken Tax," and the fact that a "Japanese" car is often more American than a "Domestic" one. Honestly, the global automotive supply chain is so tangled that the word "import" has almost lost its original meaning. But if we’re looking at the hard data from the U.S. Department of Commerce and groups like the American Automotive Policy Council, the answer is a resounding yes. We import millions of them. Every single year.
The Massive Scale of the American Car Appetite
The United States is the second-largest vehicle market on the planet. We have an insatiable hunger for SUVs and trucks. To meet that demand, we don't just rely on Detroit. In 2023 alone, the U.S. imported over $190 billion worth of passenger vehicles. That’s not even counting the parts—the engines, the transmissions, and the tiny semiconductors that make your dashboard light up.
Mexico and Canada are our biggest partners here. Thanks to the USMCA (the successor to NAFTA), the borders are basically fluid for car parts. You’ve got vehicles crossing the border multiple times in various states of completion before they ever hit a showroom floor.
- Mexico: The powerhouse. Brands like Nissan, GM, and Volkswagen have massive footprints here because of lower labor costs and proximity.
- Japan: Still a heavy hitter, though they’ve moved much of their production to the U.S. South.
- South Korea: Hyundai and Kia have exploded in market share, shipping thousands of EVs and sedans from Ulsan to U.S. ports like Brunswick, Georgia.
- Germany: The luxury kings. Even though BMW has its largest plant in the world in South Carolina, they still ship high-end Porsche and Audi models straight from Europe.
Why the "Import" Label is a Total Lie
Here is where it gets weird.
Take the Honda Odyssey. It’s a Japanese brand. But for years, it has consistently ranked as one of the "most American" made cars by the Cars.com American-Made Index. It’s designed in Ohio and built in Alabama using a massive percentage of domestic parts.
✨ Don't miss: Online Associate's Degree in Business: What Most People Get Wrong
Contrast that with the Ford Mustang Mach-E. Iconic American brand, right? It’s assembled in Cuautitlán, Mexico. So, when you ask does the us import cars, you have to realize we are often importing "American" brands from abroad while "foreign" brands are building cars in the middle of Tennessee.
It’s a global shell game. Manufacturers move production based on currency fluctuations, trade tariffs, and where the robots are cheapest to run.
The 25-Year Rule: The Forbidden Fruit
We can't talk about imports without mentioning the stuff you can't have. There is a specific community of car enthusiasts who lose their minds over the 25-Year Rule. Under the Imported Vehicle Safety Compliance Act of 1988, you cannot legally import a car that wasn't originally sold in the U.S. unless it is at least 25 years old.
Why? Mercedes-Benz actually lobbied for this back in the 80s. They were annoyed that people were buying cheaper "grey market" versions of their cars from Europe instead of buying the marked-up U.S. versions.
Now, we see a flood of R34 Nissan Skylines and old Land Rover Defenders hitting our shores. These are "true" imports—units that weren't meant for us but are finally legal to drive on the 405 without the feds crushing them.
The Electric Shift: A New Import War
Everything changed with the Inflation Reduction Act (IRA).
🔗 Read more: Wegmans Meat Seafood Theft: Why Ribeyes and Lobster Are Disappearing
Suddenly, the government decided that if you want a $7,500 tax credit, your car can't just be imported from anywhere. It needs to be assembled in North America, and the battery minerals have to come from "friendly" countries. This has caused a massive scramble.
Hyundai, for instance, got caught flat-footed. They were importing the Ioniq 5 and Ioniq 6 from South Korea. Suddenly, their cars were $7,500 more expensive than a Tesla. Their response? They are pouring billions into a "Metaplant" in Georgia.
So, while we still import a huge number of EVs, the trend is shifting toward "localization." The goal for most brands is to stop importing finished cars and start importing just the high-value tech components. It's cheaper. It's faster. It avoids the headaches of global shipping lanes being blocked by a stuck boat in the Suez Canal.
Ports: The Unsung Heroes of the Auto Industry
If you want to see where the U.S. imports cars in real-time, go to the Port of Baltimore or the Port of Jacksonville. It is a sight to behold. Massive "Ro-Ro" (Roll-on/Roll-off) ships—which look like giant floating shoeboxes—empty out thousands of cars in a matter of hours.
These ports have huge processing centers. When a BMW lands in New Jersey, it’s not quite ready for the dealer. It goes to a Vehicle Distribution Center (VDC) where technicians check for shipping damage, install floor mats, and sometimes even update the software.
It’s a finely tuned machine. But it’s vulnerable. We saw this during the pandemic when car lots became ghost towns. When the imports stop, the U.S. economy feels it immediately. Used car prices skyrocket because we simply don't have the domestic capacity to build everything we want to drive.
💡 You might also like: Modern Office Furniture Design: What Most People Get Wrong About Productivity
Taxes, Tariffs, and the Chicken Tax
You might wonder why we don't see many small, cool pickup trucks from abroad. Why no Toyota Hilux? Why no Ford Ranger Raptor (until recently)?
Blame the chickens.
In the 1960s, France and West Germany put a tax on American chicken. President Lyndon B. Johnson retaliated by slapping a 25% tariff on imported light trucks. It’s literally called the Chicken Tax. Decades later, it’s still in effect. This is why "importing" a truck is basically financial suicide for a car company. To get around it, companies like Ford and Rivian have to build their trucks here, or companies like Subaru used to bolt plastic seats into the beds of their Brat "cars" to reclassify them and avoid the tax.
What This Means for Your Next Purchase
When you're looking at a window sticker (the Monroney label), look at the "Parts Content" section. It’s required by law. It will tell you exactly where the engine was built, where the transmission came from, and the final assembly point.
You’ll be shocked.
You might find that your "import" has 70% U.S./Canadian parts content. Or you might find that your "domestic" SUV is 60% Mexican. Honestly, the distinction is for marketing departments and politicians. For the rest of us, it’s all one big, interconnected web.
Actionable Steps for Navigating the Import Reality
If you are in the market for a vehicle and the origin of the car matters to you—whether for economic reasons, quality perceptions, or tax incentives—here is how you actually handle it.
- Check the VIN First: If the Vehicle Identification Number starts with a 1, 4, or 5, it was built in the U.S. A 2 means Canada, 3 means Mexico, J means Japan, K means Korea, and W means Germany. Don't listen to the salesman; listen to the VIN.
- Verify IRA Eligibility: If you’re buying electric, go to fueleconomy.gov to see if the specific VIN qualifies for federal tax credits. Being an "import" can cost you $7,500 at the point of sale.
- Research "Parts Content" Reports: If you want to support local labor, look at the annual index from the American University Kogod School of Business. They factor in where the R&D happens, not just where the bolts are tightened.
- Mind the Maintenance: Genuine imports (cars actually shipped from overseas) can sometimes have higher parts costs or longer wait times if a specific component fails, as those parts have to cross an ocean too.
The reality of how the U.S. imports cars is that we've moved past simple labels. We are a nation of drivers who depend on a global assembly line. Whether it’s a luxury sedan from Stuttgart or a budget-friendly hatchback from Puebla, the American road is paved with international effort.