Autos Drive America Releases New Research on Vehicle Affordability in the U.S. Market

WASHINGTON, D.C.—Autos Drive America today released a white paper revealing vehicle affordability is at risk in the U.S. new car market due to uncertainty surrounding the upcoming USMCA review and Section 232 tariffs.

The report, American Automotive Affordability: An Analysis of Affordable Vehicles in the U.S. Market, and How Tariffs and the USMCA Review Could Put Them at Risk, draws on 2025 U.S. new light vehicle registration data to examine which vehicles are available to American consumers, where they are produced, and how trade policy changes could impact that market.

“International automakers have long been committed to building affordable vehicles here in the United States, and the data shows that commitment is paying off for American consumers,” said Jennifer Safavian, President and CEO of Autos Drive America. “But the affordability that consumers enjoy today is not guaranteed. Section 232 tariffs are already driving up costs across the supply chain, and uncertainty over the future of USMCA puts pressure on the North American manufacturing ecosystem. Policymakers must understand what is at stake.”

Findings in the white paper include:

• International automakers accounted for 76% (4 million) of the 5.3 million affordable vehicles (defined as vehicles with an MSRP with $35,000 or less) sold last year.
• The United States was the single largest source of affordable vehicles sold in the U.S. market, accounting for 31% of sales. North America as a whole (the U.S., Canada, and Mexico) was the origin of 68% of all affordable vehicles sold.
• International automakers sold 88% of U.S.-made affordable vehicles registered in 2025.
• Affordable vehicles comprised more than half of non-luxury car sales for several international automakers.
• American consumers have many choices when buying an affordable vehicle. The industry offered more than 70 vehicle models with affordable options across 17 different brands with international automakers providing 58 models.

The white paper also examines the critical role of USMCA in sustaining the affordable vehicle market. With the mandatory 2026 joint review now approaching, the report urges policymakers to allow the agreement’s rules time to fully take effect before imposing additional requirements that would again force automakers to absorb significant compliance costs.

“The USMCA is working, and it is working for American consumers,” Safavian added. “A stable North American trade framework helps automakers, build and price vehicles that working families can afford. We urge policymakers to protect that framework.”

The full white paper is available here at autosdriveamerica.org.

About Autos Drive America

Autos Drive America represents the U.S. operations of international motor vehicle manufacturers integral to America’s workforce, communities, and economy. As the voice of international automakers in the United States, Autos Drive America works closely with policymakers at all levels of government to advance policies that promote jobs, trade, and growth in the U.S. automotive industry. Learn more at www.autosdriveamerica.org.