As President Donald Trump campaigns nationwide ahead of the midterm elections, he continues to credit his administration’s trade policies, particularly tariffs, with a resurgence in American automobile manufacturing. Speaking earlier this week in Baltimore, Trump asserted that the country had not seen a new car plant built in 44 years and claimed that more auto factories are now under construction than ever before. However, industry data and expert analysis indicate that these statements do not reflect the full picture.
Contrary to Trump’s claim, multiple new vehicle assembly plants have opened in the United States over the past four decades. According to data from industry group Autos Drive America, more than two dozen major facilities have been established or retooled in that period. Significant automotive manufacturing growth has occurred under Trump’s tenure, notably with Rivian’s expansion in Georgia and Hyundai’s Metaplant America opening there. Mazda and Toyota announced a joint manufacturing facility in Alabama during his first term, while Volvo opened its first U.S. plant in South Carolina.
Industry experts emphasize that such developments represent a continuation of trends seen since at least the early 2000s rather than a dramatic shift unique to the Trump administration. Joshua Hausman, an associate professor of economics at the University of Michigan, pointed out that foreign automakers like Honda have been producing cars in U.S. plants for decades, and that new factory construction has been ongoing regularly.
The White House highlights investments totaling over $50 billion from automakers as evidence of a manufacturing revival linked to Trump’s trade agenda. This includes planned expansions from Toyota, Stellantis, Ford, General Motors, and Mercedes-Benz. A White House spokesperson credited these investments to the administration’s "America First Trade Agenda," framing it as a successful manufacturing renaissance.
However, the growth in automobile manufacturing under Trump is not markedly different from trends seen during President Joe Biden’s administration. New and revamped plants have continued opening, including Rivian’s reopening of a former Mitsubishi facility in Illinois, Lucid’s plant in Arizona, and Tesla’s new Gigafactory in Texas. Ford has also developed electric vehicle operations in Michigan and Tennessee, while GM and Venture-backed companies have announced multimillion-dollar investments.
Trump has also claimed that automakers are withdrawing production from countries such as Canada, Mexico, Japan, Germany, and South Korea to return to the U.S. While some relocation has occurred, many foreign car manufacturers have maintained U.S. production for decades, with companies such as Volkswagen, Honda, Nissan, and Toyota establishing assembly operations going back to the late 1970s and 1980s.
Experts urge caution in attributing increased auto manufacturing directly to tariffs. Sam Fiorani of AutoForecast Solutions noted that investment decisions in vehicle production are long-term and complex, not easily swayed by short-term trade actions. Moreover, tariffs, including those on steel and aluminum, may have increased costs for domestic manufacturing, complicating decisions for automakers.
While tariffs may have encouraged some production to shift to U.S. plants, they have also contributed to rising vehicle prices and disrupted sourcing strategies essential to the global auto industry’s competitiveness. Overall, the current wave of tariffs has not triggered a dramatic increase in new assembly plants but has had mixed impacts across the sector.