US Trade in 2024 7-31-25

In 2024, the U.S. engaged in trade with more than 200 countries and territories. While a large number of countries participate in trade with the U.S., a relatively small number account for the majority of the trade volume. For example, the top 15 trading partners make up nearly 75% of the total trade.  

Here's a more detailed look:

Broad Reach: The U.S. has trade relationships spanning across the globe. 

Concentrated Trade: While the number of trading partners is high, the majority of U.S. trade activity is concentrated with a few key countries. 

Top Partners: In 2024, Mexico, Canada, and China were consistently cited as the top three trade partners of the U.S., based on import value. 

How many countries traded with the us in 2024

Based on available data from 2024, the United States traded with a significant number of countries and territories, estimated at over 200.

The U.S. Bureau of Economic Analysis (BEA) even reported the introduction of a new table that presents total services trade for 237 countries and areas. 

While a full list of all countries that traded with the U.S. in 2024 isn't explicitly provided, here are some highlights from various sources:

• The U.S. had a goods trade deficit with 92 countries and a surplus with 111 countries in 2024.
• Some of the top U.S. trading partners in 2024 based on total trade include Mexico ($840 billion), Canada ($762 billion), China ($582 billion), Germany ($236 billion), and Japan ($228 billion). 

It's important to note that the term "traded with" can encompass both exports and imports of goods and services. Different reports may focus on specific aspects of trade, such as goods only, or include both goods and services. 

https://www.google.com/search?q=how+many+countries+traded+with+the+us+in+2024

Comments

On August 1, 2025, all current tariffs in play will continue until they are reduced by new agreements with these countries.

China has agreed to continue trade with the US in processing Rare Earth Materials in exchange for the US keeping Chinese students in US Universities. Making further progress on Trade with China will become a priority. Making further progress on Trade Deals with Canada and Mexico will also be included as priorities. 

The US has included  “Non-Trade” conditions to the current Trade Deals. These include reductions in Fentanyl and increases in Deportation of Illegals back to their home countries. Issues with China include TikTok, Fentanyl, Panama Canal, threats to Taiwan and continued aggression.    

All current Tariffs imposed by the US will begin to be collected on August 1.

Comments

US Tariff Revenue is expected to reach $300 billion.

Norb Leahy, Dunwoody GA Tea Party Leader

US Current Trade Deal with Singapore 7-31-25

There's no new US-Singapore trade agreement in 2025 mentioned in recent news or official government reports. The existing US-Singapore Free Trade Agreement (USSFTA), which entered into force in 2004, remains the primary framework for trade between the two countries. The USSFTA eliminates tariffs on virtually all goods traded between the US and Singapore.  

Here's a breakdown of the current situation:

Existing Agreement:

The US-Singapore Free Trade Agreement (USSFTA) is in effect and continues to govern trade relations. 

No New Agreement:

There are no reports or announcements of a new trade deal between the US and Singapore in 2025. 

Focus on Implementation:

The US Trade Representative monitors the implementation of the USSFTA and conducts regular meetings with Singapore to address trade issues, according to the USTR. 

Trade Relationship:

The US and Singapore enjoy a strong trade relationship, with significant two-way trade and investment. 

Recent Trade Data:

In 2024, US goods trade with Singapore totaled $89.2 billion, with exports of $46 billion and imports of $43.2 billion, according to the USTR. 

Therefore, while the US and Singapore have a robust trade relationship, there is no new trade agreement in the works for 2025. The existing USSFTA continues to be the guiding framework. 

US trade relations with Singapore in 2025

The United States and Singapore maintain a close and cooperative trade relationship underpinned by the United States-Singapore Free Trade Agreement (USSFTA), which came into force on January 1, 2004. While this agreement remains in effect, a new development this year has introduced complexities: 

Recent Tariffs:

• In April 2025, the US introduced a 10% baseline tariff on imports from Singapore, despite the existence of the USSFTA.
• Singapore's trade minister has expressed that the US has been non-committal regarding whether this baseline tariff will remain at 10% in the future. 

Key Aspects of the USSFTA:

The USSFTA significantly reduced or eliminated tariffs on most goods traded between the two countries shortly after it came into effect, with some U.S. tariffs phased out over time. According to the International Trade Administration, this agreement has enhanced U.S. exports and competitiveness, providing a high standard of trade liberalization. Benefits for U.S. businesses include zero tariffs on most goods entering Singapore, increased export opportunities in key sectors like medical instruments and microelectronics, and improved market access in services, investment, and government procurement, along with stronger intellectual property protection. 

Trade Statistics (2024 Data):

In 2024, U.S. goods trade with Singapore was valued at approximately $89.2 billion, with U.S. exports totaling $46 billion and imports from Singapore at $43.2 billion, resulting in a U.S. goods trade surplus of $2.8 billion. 

Beyond Tariffs: Expanding Cooperation

Despite the recent tariff situation, the U.S. and Singapore are expanding their partnership beyond traditional trade. Initiatives include an annual Critical and Emerging Technology Dialogue focusing on areas like AI and biotechnology, the Partnership for Growth and Innovation (PGI) promoting collaboration in the digital economy and clean energy, a Digital Economic Cooperation Roadmap that includes AI governance, an expanded Climate Partnership on standards and sustainable finance, and a bilateral space dialogue. 

In summary, the trade relationship between the United States and Singapore remains strong, supported by the USSFTA, while both nations are also actively increasing cooperation in new and emerging sectors despite recent tariff changes

https://www.google.com/search?q=us+trade+deal+with+singapore+2025

Comments

In 1984, I flew to Singapore with my boss, Dennis Hayes, founder of Hayes Microcomputer Products. Dennis spent his time working with the Singapore government to establish a subsidiary in Singapore. I spent my time with local candidates who would become the “starter team” to run this subsidiary. I also learned Ex-Patriot Compensatioand drafted the offer to the Team Manager of this Asian Sales Operation who was an Ex-Patriot US citizen. The new Team had worked together at Mattel and Mattel was closing their operation. Dennis asked me if I liked the Team and I said: “They’re more like us than we are.” They were smart, business focused and family oriented. At the end of my week in Singapore, I was impressed with the Singapore as the “melting pot” of Asia.. 

Norb Leahy, Dunwoody GA Tea Party Leader

Panama Canal Issues 7-31-25

Currently, the Panama Canal is owned and operated by the Panama Canal Authority, an independent agency of the Panamanian government. The United States relinquished full control of the canal to Panama on December 31, 1999, as stipulated by the Torrijos-Carter Treaties of 1977.  

While the treaties allow the US to intervene militarily to defend the neutrality of the Canal, they don't grant the US the right to reassert control or unilaterally take back the canal. However, the idea of the US regaining control over the Panama Canal has been discussed. 

Potential options discussed

Buying or negotiating ownership: One option suggested is the US negotiating to buy the Canal or its ownership from Panama. However, this is seen as highly unlikely due to strong nationalist sentiment in Panama regarding the Canal's sovereignty.

Military intervention: Some have suggested military intervention to retake control, but such action would have significant international ramifications and likely be in violation of international law and the existing treaties.

Economic measures: The possibility of using economic pressure, such as sanctions or withdrawing trade agreements, has also been raised. While potentially less drastic than military action, the long-term effectiveness and international support for such measures are questionable. 

It is important to note that any US action to regain control of the canal would be highly controversial and could have significant consequences for US-Panama relations and international trade. Currently, the US is focused on partnering with Panama to secure the canal and counter perceived threats, such as China's growing influence in the region. 

How will the US regain control over the Panama Canal

The US and the Panama Canal: regaining control is a complex issue

The United States does not currently control the Panama Canal; it transferred full control of the waterway to Panama on December 31, 1999, according to the 1977 Torrijos-Carter Treaties. The treaties guaranteed Panama would gain control and outlined the terms for its operation, defense, and eventual withdrawal of U.S. military forces. Under the Neutrality Treaty, the US retains the permanent right to defend the canal from any threat that might interfere with its continued neutral service to ships of all nations. 

However, the question of the US regaining control of the canal has been raised by former President Donald Trump, citing the canal's importance to U.S. trade and national security, as well as concerns over China's growing influence in the region. Several possible avenues have been discussed, each with its own complexities: 

·       Negotiating its purchase: One possibility involves the US negotiating to buy back the canal from Panama. This was proposed in legislation introduced by U.S. Representative Dusty Johnson, according to Newsroom Panama. However, this would likely face strong opposition in Panama, as the canal is considered a symbol of national sovereignty and a source of revenue, accounting for roughly 4% of the country's GDP in 2024. Panamanian President José Raúl Mulino has affirmed that "every square meter of the canal belongs to Panama and will continue to," according to NBC 7 San Diego.

·       Utilizing the neutrality treaty: The 1977 Neutrality Treaty grants the US the right to act to ensure the canal remains open and secure if its operation is threatened due to military conflict. This could involve military action to protect the waterway, but it doesn't automatically mean reasserting control or unilaterally retaking ownership, which experts argue would violate international law.

·       Military intervention: This would be a more drastic measure and would likely involve significant complications, including potential international condemnation and a counterinsurgency operation requiring a large number of troops, according to NewsNation.

·       Economic measures: The US could also consider using economic pressure, such as canceling its free trade agreement with Panama, isolating its banking sector, or denying visas to Panamanian citizens. However, such actions could harm Panama's economy and generate resentment, potentially leading to further instability. 

It is important to note that the US and Panama are currently working together on security cooperation and the US maintains a keen interest in the canal's security and efficient operation given its importance to global trade and US interests. According to Reuters, US Defense Secretary Pete Hegseth recently vowed to "take back" the Panama Canal from Chinese influence during a visit to Panama in April 2025. He emphasized deepening security cooperation with Panamanian security forces and stated that China would not be allowed to "weaponize" the canal. 

Overall, any attempts by the US to regain control over the Panama Canal would be a complex and multifaceted undertaking, facing significant legal, diplomatic, and political challenges.

https://www.google.com/search?q=how+will+the+us+regain+control+over+the+panama+canal

In 2025, Panama's economy is experiencing growth, particularly in exports, driven by the transportation sector and the Panama Canal. The country is projected to surpass $1 billion in exports, with a 25.1% increase in exports during the first quarter compared to the same period in 2024, according to Newsroom Panama,. This growth is fueled by both registered exports and value-added exports under special regimes. 

Key highlights for Panama's trade in 2025:

Exports: Panama's exports are projected to exceed $1 billion, with a significant increase in the first quarter of 2025, according to Newsroom Panama. 

Imports: While exports are growing, Panama's imports are also substantial, with the US being a major trading partner for both exports and imports. 

Trade Balance: Panama's trade balance shows a deficit, indicating that imports exceed exports. 

Economic Growth: Panama's GDP is projected to grow by 4.5% in 2025, according to the Gedeth Network, with the transportation sector, including Panama Canal tolls, being a major contributor. 

Major Export Destinations: The Netherlands, Taiwan, and the United States are among the top destinations for Panamanian exports. 

Major import Sources: The United States is a major source of imports for Panama, with refined petroleum, aircraft parts, and unspecified commodities being significant import items. 

Specific Product Trends:

Raw sugar, gold, and jewelry are key export items, while refined petroleum is a major import. 

In May 2025, specific trade figures between the US and Panama include:

·       Panama exported $62.7 million to the US.

·       Panama imported $837 million from the US.

·       This resulted in a trade deficit of $774 million.

·       Panama's exports to the US increased by $20.4 million (48.1%) compared to May 2024.

·       Panama's imports from the US decreased by $116 million (12.2%) compared to May 2024. 

Overall, Panama's economy in 2025 is characterized by strong export growth, driven by the transportation sector and the Panama Canal, but with a continued trade deficit. 

https://www.google.com/search?q=panama+imports+exports+2025

Information on the Panama Canal's revenue for the 2025 fiscal year (October 2024 - September 2025) indicates projected revenues of $5.62 billion USD. This reflects a significant increase compared to the estimated revenues for the 2024 fiscal year, which were around $4.99 billion. 

https://www.google.com/search?q=what+was+the+total+revnue+derived+from+panama+canal+operations+in+2025

Panama's nominal GDP for 2025 is projected to be around $91.68 billion, In 2025, Panama's nominal GDP per capita is projected to be $20,080. The population of Panama in 2025 is estimated to be around 4.57 million

Land Area: The total land area of Panama is 28,703 square miles.  

Low water levels began affecting Panama Canal operations in early 2023, and restrictions on the number and size of ships passing through the canal were implemented starting in June 2023 due to historically low water levels in Lake Gatun.

The low water levels were primarily caused by a prolonged and severe drought in Panama, according to the World Weather Attribution. This drought was significantly influenced by the El Niño weather pattern, according to AP News and Carbon Brief. While some studies initially suggested climate change as a key factor, subsequent research indicated that El Niño was the primary driver of the low rainfall in the region. 

The impact on canal operations has been significant, leading to a decrease in vessel transits and disruptions to global shipping. This has resulted in longer wait times for ships, increased shipping costs, and the need for some vessels to take alternative routes or lighten their cargo loads, says Woodwell Climate. 

https://www.google.com/search?q=when+did+low+water+level+problems+begin+toe+affects+panama+canal+operations

The Panama Canal Authority employs approximately 9,000 to 10,000 people. This workforce is responsible for the operation, maintenance, and security of the Panama Canal. That’s 2% of their population.

https://www.google.com/search?q=how+many+employees+does+the+panama+canal+operation+employ

Comments

Lower Ocean Levels caused low water problems in the Panama Canal. Panama needs to end their contract with China that allows them to own and control part of the Canal. Revenue from Canal Operations is 5% of Panama’s nominal GDP. Panama’s $774 million Trade Deficit is out of control.  Their response to the US appears to be “Leave us alone, we’re stupid”.

Norb Leahy, Dunwoody Ga Tea Party Leader

US Border Wall Schedule 7-31-25

Donald Trump hopes to complete the construction of a physical barrier spanning the entire US-Mexico border by the end of his second term, according to Vice President JD Vance. Vance made this statement in March 2025 during a visit to Eagle Pass, Texas.  

During his first term, Trump's administration built or replaced over 450 miles of border wall. However, it's worth noting that the total mileage built by the Trump administration during the first term varies depending on how it's counted, with some analyses indicating a smaller number of new miles and a larger number of replaced miles. 

The US-Mexico border is approximately 1,954 miles long.

When will the southern border wall be completed according to trump's plan

Vice President JD Vance has indicated that President Trump hopes to complete the construction of a physical border wall along the entire U.S.-Mexico border by the end of his second term, which would be in 2029

This follows a first term where Trump oversaw the construction or replacement of over 450 miles of border wall. 

Further funding for the wall has recently been secured. The "One Big Beautiful Bill Act," passed by the Republican-controlled Congress on July 3, 2025, allocates $46.5 billion for border wall construction.

The Department of Homeland Security's plans involve using this funding for hundreds of miles of additional barriers. DHS has also already made progress on over 85 miles of wall planned or under construction with prior year funding. 

It is important to note that the completion date is an aspiration and dependent on various factors, including continued funding and overcoming potential obstacles such as legal challenges and land acquisition difficulties. 

https://www.google.com/search?q=when+will+the+southern+border+wall+be+completed+according+to+trump%27s+plan

Comments

The US-Mexico border is approximately 1,954 miles long.

Trump built over 450 miles of border wall in his first term 2017-2021.

Trump has built an additional 85 miles of border wall in his second term in 2025

535 miles have been built so far as of 2025.

1419 miles will need to be built to complete the wall by the end of Trump’s 2^nd Term in 2029.

Norb Leahy, Dunwoody Ga Tea Party Leader

 

Less Expensive Cars 7-31-25

In 2025, electronics are estimated to account for roughly 40% of the total cost of a new car. This includes various components like chips, sensors, and software that power advanced driver-assistance systems (ADAS), infotainment, and other onboard technologies. Several factors contribute to this high percentage: 

Increased Complexity: Modern vehicles incorporate numerous electronic systems, from engine management and safety features to entertainment and connectivity options. 

Advanced Technology: The demand for features like autonomous driving, enhanced connectivity, and sophisticated infotainment systems drives the need for more powerful and complex electronic components, according to industry analysts. 

Software Integration: A significant portion of a car's functionality is now software-driven, requiring sophisticated software and powerful microcontrollers, says a market research firm. 

Electrification: The shift towards electric vehicles (EVs) further increases the reliance on electronics, with components like batteries, electric motors, and sophisticated power management systems all playing a crucial role, according to automotive experts. 

what is the electronics share of the cost of a new car 2025

The electronics share of the cost of a new car in 2025

The electronics share of the total cost of a new car has been steadily increasing and is expected to continue this trend. By 2025, it's estimated that electronics account for around 40% of the cost of a new car. This is a significant rise from previous years and a continuation of a trend where electronics play a larger and larger role in the automotive industry. The proportion is predicted to increase further, potentially reaching 50% of the total cost by 2030. 

Here's a look at the trajectory of this trend:

·       1970: 5%

·       1980: 10%

·       1990: 15%

·       2000: 22%

·       2010: 35%

·       2025: Estimated around 40%

·       2030: Projected 50% 

Factors driving this increase

Several factors contribute to the increasing cost of automotive electronics:

·       Growing complexity and sophistication of in-car systems: Modern cars include advanced features such as:

o   Sophisticated infotainment systems

o   Advanced Driver-Assistance Systems (ADAS)

o   Connectivity features

o   Safety features (e.g., airbags, anti-lock braking systems)

o   Engine management systems

·       Transition to electric and autonomous vehicles: Electric vehicles (EVs) and autonomous vehicles rely heavily on advanced electronic components and software for their operation and functionality.

·       Increased demand for semiconductors: The growing adoption of electronic systems in cars drives a higher demand for semiconductors and other electronic components.

·       Technological advancements: The continuous development of new and improved technologies contributes to rising costs.

·       Supply chain disruptions and material costs: Geopolitical factors and supply chain issues can affect the availability and cost of key electronic components like semiconductors. 

This increasing reliance on electronics is transforming cars into sophisticated, software-driven platforms, driving both the cost of electronics and the overall cost of new vehicles upwards. 

https://www.google.com/search?q=what+is+the+electronics+share+of+the+cost+of+a+new+car+2025

Comments

Nothing Exceeds like Excess.

Ford and GM need to design new cars with lower prices. The US is dependent on cars to get to work and shop for groceries. Half the US population cannot afford new cars. Removing unnecessary electronic devices will be needed to produce a new car that can sell for under $20,000.

Weight needs to be reduced and aerodynamic design employed to increase MPG. Hybrids are best.

Norb Leahy, Dunwoody Ga Tea Party Leader

Cryptocurrency Debate 7-31-25

There's a lot of debate about whether cryptocurrency, specifically Bitcoin (BTC), will ultimately replace gold as a safe-haven asset and store of value. It's unlikely that cryptocurrency will completely replace gold, but they may complement each other in diversified portfolios. Here's a look at the arguments: 

Arguments for cryptocurrency replacing or complementing gold

Digital nature and efficiency: Bitcoin's digital nature allows for easy and rapid global transfers, appealing to investors seeking efficient value transfers.

Scarcity: Bitcoin's supply is capped, which some argue makes it a strong hedge against inflation.

Portability and Divisibility: Bitcoin offers superior portability and divisibility compared to gold, allowing for smaller transactions and easier transfer across borders.

Verifiability: The blockchain makes Bitcoin's authenticity and transaction history easily verifiable, unlike gold which faces issues with counterfeiting.

Potential for Growth: Some see significant growth potential in Bitcoin and other cryptocurrencies, attracting younger investors. 

Arguments against cryptocurrency replacing gold

Volatility and Risk: Cryptocurrencies are highly volatile and speculative, experiencing significant price swings and carrying a higher risk of loss compared to gold.

Lack of Historical Track Record: Gold has a centuries-long history as a reliable store of value and has proven resilient during economic and political crises. Bitcoin, in contrast, is relatively new.

Regulatory Uncertainty: The regulatory landscape for cryptocurrency is still evolving and could impact its value and legality.

Tangibility and Universal Acceptance: Gold's physical form and universal acceptance provide a sense of security and trust that digital assets currently lack.

Security Concerns: Cryptocurrency exchanges and wallets are vulnerable to hacking and fraud, unlike physical gold which offers a different type of security risk.

Diverse Use Cases for Gold: Gold has multiple uses, including jewelry and electronics, diversifying its demand and potentially making its price more resilient than assets with fewer uses like cryptocurrencies. 

Conclusion

While Bitcoin presents a compelling case with features like scarcity and portability, it still needs to demonstrate the long-term stability and resilience that gold has consistently shown through centuries of use as a store of value and a safe-haven asset. It's more likely that the future will involve a combination of both, with gold remaining a cornerstone of stability in portfolios, especially for cautious investors, while cryptocurrencies continue to attract those with a higher risk tolerance seeking growth and innovation. 

https://www.google.com/search?q=will+cryptocurrency+replace+gold

Gold is a widely used and crucial component in numerous electronic products due to its excellent electrical conductivity, corrosion resistance, ductility, and malleability. Gold's high conductivity allows electricity to flow easily through it with minimal resistance, and its resistance to corrosion ensures components maintain their function and reliability over time. Gold's softness allows for its use in creating very thin wires and films, according to Monroe Engineering.

Gold is found in various electronic products, including computers, smartphones, televisions, automobiles, aerospace systems, and medical devices. While the amount of gold in individual devices is small, the large volume of electronics produced contributes significantly to the demand for gold. The World Gold Council reported that around 290 tons of gold were used in electronics in 2020, and this number is expected to increase. The electronics sector accounted for about 5% of U.S. gold usage in 2023. 

Despite its cost, gold is valued in electronics for applications requiring high reliability and miniaturization. Fluctuating gold prices may lead to the consideration of alternative materials like silver, copper, and palladium for cost-sensitive applications. 

Processors (CPUs): Gold wires are used to connect and bond silicon chips to the substrate layer, and gold plating can be found on pins or contacts.

o   Memory Modules (RAM): Memory chips may have gold-plated connector pins for better conductivity.

o   Hard Disk Drives (HDDs): Gold can be found in the connector pins and internal circuitry.

Smartphones and Tablets:

o   Similar to computers, these devices contain gold in their printed circuit boards, connectors, and internal wiring to ensure reliable electrical connections and resistance to corrosion.

o   Gold may also be used in camera sensors and microchips within these devices.

Televisions and other media players: Gold is found in the circuit boards and components that require reliable connections.

·       Gaming Devices: Consoles and other gaming devices can also contain gold in their internal circuitry and connectors.

·       Older Electronics: Devices like VCRs, camcorders, old radios, and stereo components can have larger printed circuit boards with more gold content compared to newer, smaller devices.

·       Other Electronic Products: Gold may be found in some automotive electronics (e.g., airbag sensors), certain medical devices (e.g., pacemakers), some household appliances, and specialized applications like space technology (e.g., satellite components and astronaut helmet visors). 

It's important to note that the amount of gold used in each device is typically very small (often in milligrams), according to Bajaj Finserv. 

https://www.google.com/search?q=what+electronics+products+use+gold

The price of gold per ounce has fluctuated significantly since 1971. Initially, the price was fixed at $35 per ounce under the Bretton Woods agreement. After the dollar was taken off the gold standard in August 1971, the price rose to $42.22 per ounce. By 1980, it reached a high of $850 per ounce. In the early 2000s, gold prices began to climb again, peaking around $1,900 per ounce between 2008 and 2011 before falling and then rising to over $2,070 in 2020. 

Here's a more detailed look:

Gold surged to over $2,070 per ounce during the COVID-19 pandemic. 

2022: Gold reached $2,070 in March due to Russia's invasion of Ukraine. 

2023: 1971: The price was officially $42.22 per ounce, but was previously fixed at $35 per ounce under the Bretton Woods agreement. 

1972: The US devalued the dollar, increasing the price to $38 per ounce. 

1971-1980: Prices rose dramatically, influenced by events like the oil crisis, the Iranian revolution, and the Soviet intervention in Afghanistan. 

1980: Gold reached a high of $850 per ounce. 

2000s: Prices began to rise again, with a significant increase during the Great Recession and the European sovereign debt crisis. 

2008-2011: Prices peaked around $1,900 per ounce. 

2020:Gold hit a new high of $2,147 in December. 

https://www.google.com/search?q=what+was+the+price+of+gold+per+ounce+by+year+since+1971

Comments

The price of gold per ounce on July 30, 2025, is approximately $3,327.00. This price is a spot price, meaning it reflects the current market value of gold. 

Gold has become a hedge against inflation since 1971. When Nixon ended the Gold Standard, gold sold for $35 per ounce, then moved to $850 per ounce in 1980.

Gold has become a “parking place” for extra cash since 1971. Cryptocurrency is joining Gold as a “parking place”, but has gained in flexibility.

Gold was used in Dentistry until the prices started to climb. Dentists replaced it.

Norb Leahy, Dunwoody Ga Tea Party Leader

Foreign Auto Plants in US 7-30-25

Here's an overview of foreign auto companies adding or expanding auto plants in the US in 2025:

·       Hyundai Motor Group: Has made significant investments in expanding its manufacturing capabilities, including its Metaplant in Georgia and a new steel plant in Louisiana. They are increasing production capacity for both electric vehicles (EVs) and hybrid vehicles, aiming for an annual capacity of 1.2 million vehicles across the Hyundai, Kia, and Genesis brands by 2028. The Metaplant alone is expected to produce up to 500,000 electric and hybrid vehicles annually and plans to employ 8,500 people by 2031. Their investment also includes a focus on future technologies like autonomous driving, robotics, and AI.

·       Honda: Is shifting production of the Civic from Japan to the US and is manufacturing the next-generation Civic hybrid at an existing plant in Indiana.

·       Mercedes-Benz: Is expanding its existing Tuscaloosa, Alabama, plant and adding production of a new vehicle there.

·       BMW: Is investing heavily in its Spartanburg, South Carolina, plant to prepare it for EV production and is also building a battery assembly facility nearby.

·       Toyota: Is expanding its existing US plants and will soon begin shipping batteries for North American electrified vehicles from its new battery plant in North Carolina.

·       Kia: Is expanding its US production with the assembly of the EV6 and EV9 electric SUVs at its plant in West Point, Georgia, after a $217 million investment.

·       Volkswagen: Is investing in a new manufacturing plant in South Carolina to produce battery-powered and hybrid SUVs and trucks, with production slated to begin in 2027.

·       Volvo Cars: Is expanding production at its Charleston, South Carolina factory, adding a new plug-in hybrid mid-sized SUV model alongside the electric EX90.

·       Audi: Is nearing a decision to build its first US-based factory.

·       Nissan: Is considering moving some production from Mexico and Canada to the US and has maintained a second shift at its Tennessee plant despite a previous decision to cut it.  

In essence, major foreign automakers are making substantial investments in expanding or establishing new manufacturing facilities in the US, particularly focusing on Electric Vehicles (EVs) and hybrids, as well as associated components like batteries. These investments are driven by factors such as a desire to localize production, mitigate the impact of tariffs, and capitalize on the growing US market for EVs, according to Electrify News, Reuters, and Al Jazeera. The expansion plans are creating thousands of jobs and contributing to economic growth across the country. 

Note: It's important to recognize that some of these plans, particularly those involving new plants, span several years and could be subject to changes based on market conditions and other factors. 

What foreign auto companies are adding auto plants to us 2025 ai overview

Here's a look at foreign auto companies adding or significantly expanding production facilities in the US in 2025, with an eye towards AI and related technologies:

·       Hyundai Motor Group: They're investing heavily ($21 billion from 2025 to 2028) in the US, including expanding auto production capacity, increasing parts localization (especially for EVs and batteries), and strengthening partnerships in future technologies like autonomous driving, robotics, and AI. Their Georgia facility (the "Metaplant") is a prime example of their focus on highly connected, automated, and flexible manufacturing systems optimized with AI and data, aiming to create a human-centered work environment with robots assisting human workers.

·       Toyota: They have completed construction of their first US battery plant in North Carolina, with shipments for North American electrified vehicles scheduled to begin in April 2025. This plant will produce batteries for a variety of electric vehicles (hybrid, plug-in hybrid, and battery electric) and is part of Toyota's commitment to use 100% renewable energy for production and achieve carbon neutrality by 2035.

·       Kia: As part of the Hyundai Motor Group investment, Kia is ramping up its US EV production, with their West Point, Georgia factory starting local EV6 production in January 2025, sooner than initially planned due to tariff concerns.

·       Polestar: This Chinese-owned brand began producing its EVs in the US for the first time in August 2024 at a Volvo facility in South Carolina, partly to avoid tariffs on Chinese imports.

·       Honda: They are reportedly shifting production of the Civic from Japan to the US, likely influenced by potential tariffs and a focus on domestic production. 

This trend of foreign automakers expanding or adding production in the US is driven by several factors, including:

·       Tariff avoidance and incentives for domestic manufacturing: The current political climate and potential tariffs are creating strong incentives for foreign companies to localize production in the US.

·       Strengthening supply chains: Geopolitical and environmental concerns have prompted manufacturers to focus more on developing North American supply chains for components and raw materials, according to Thomasnet.

·       Investing in future technologies: Companies like Hyundai are strategically investing in areas like AI, robotics, and advanced air mobility to enhance their competitiveness and innovation in the US market. 

The adoption of AI and robotics is transforming the automotive industry globally, including in the US. While this can lead to increased efficiency and quality, it also raises questions about the impact on employment in the automotive sector. 

https://www.google.com/search?q=what+foreign+auto+companies+are+adding+auto+plants+to+us+2025

It is more accurate to say that Mercedes-Benz plans to expand its existing US plant rather than build a new one, and Volkswagen (VW) is considering expanding its US production capacity, potentially for Audi and Porsche, but hasn't announced a new plant yet. 

Here's an overview:

·       Mercedes-Benz: Plans to add a new "core segment" vehicle to its plant in Tuscaloosa, Alabama, by 2027. This is an expansion of an existing facility rather than a brand-new plant. AutoForecast Solutions predicts this will be the compact GLC crossover.

·       Volkswagen: Is exploring options for increasing US production, potentially including Audi and Porsche vehicles, possibly at the existing Chattanooga plant or a future South Carolina site. This is primarily driven by a desire to avoid potential tariffs on imported cars from Europe and Mexico. VW is also investing significantly in Rivian, an Illinois-based electric vehicle company, as part of a joint venture focused on electric vehicle architecture and software development. 

Key takeaways:

·       Tariffs play a significant role: Potential tariffs imposed by the US government are a major factor influencing the decision-making of both automakers.

·       Expansion of existing facilities is the primary focus for Mercedes-Benz.

·       VW is exploring possibilities for new production, but a firm decision is pending.

·       The Inflation Reduction Act (IRA) and associated incentives are impacting automakers' decisions regarding EV manufacturing in the US. 

https://www.google.com/search?q=are+vw+and+mercedes+going+to+add+plants+in+us+ai+overview

Comments

The US will grant a 15% Corporate Tax for foreign car plants that locate in the US and hire US workers. This allows these companies to save 10% on taxes and save transportation costs.

Norb Leahy, Dunwoody GA Tea Party Leader

Foreign Manufacturing in US 7-30-25

As part of his broader tax policy proposals, Donald Trump has repeatedly expressed his intention to reduce the corporate income tax rate to 15% for companies that manufacture products in the United States. This proposed reduction would be applicable to both domestic and foreign companies with manufacturing operations within the U.S. 

However, the specific mechanisms for implementing this policy have not been fully detailed. It's been suggested that it could involve a reintroduction of a form of the Domestic Production Activities Deduction (DPAD) or a similar approach to reduce the effective tax rate for domestic producers. 

It's important to note the context surrounding this proposal:

·       The current corporate tax rate is 21%, a reduction from 35% under the Tax Cuts and Jobs Act of 2017 (TCJA).

·       Trump has often linked this proposed 15% rate for manufacturing to efforts to discourage companies from outsourcing jobs and encourage them to bring manufacturing back to the U.S.

·       It's a key part of his overall strategy to prioritize American manufacturing and potentially impact global trade relations. 

Potential implications

·       Attracting foreign investment: The prospect of a lower tax rate for manufacturing could potentially incentivize foreign companies to establish or expand their presence in the U.S.

·       Challenges and complexities: The implementation of such a policy could be complex and may require addressing potential issues related to how it interacts with international tax agreements and trade policies.

·       Impact on the federal budget: A reduction in the corporate tax rate, even if limited to manufacturers, could have implications for federal revenue and may necessitate finding ways to offset potential losses. 

In summary, while the specifics are still being discussed, Trump has clearly indicated his intention to offer a 15% corporate tax rate for companies, including foreign ones, that manufacture goods in the U.S. This policy is aimed at boosting domestic manufacturing and attracting foreign investment, although its final form and overall impact are yet to be seen. 

Will Trump grant a 15% corporate tax for foreign companies with plants already in the US ?

As of July 22, 2025, President Trump has signed the "One Big Beautiful Bill Act" (OBBBA) into law which includes several tax changes, including some impacting corporate tax rates

Specifically, the OBBBA includes the following:

·       15% Corporate Alternative Minimum Tax (CAMT): The Inflation Reduction Act of 2022 (P.L. 117-169) imposes a CAMT of 15% on the adjusted financial statement income of large corporations. This tax applies to both public and private corporations.

·       Reduced Corporate Tax Rate for Domestic Production: President Trump has stated his intention to reduce the corporate tax rate from 21% to 15% specifically for companies manufacturing within the U.S., as a way to stimulate domestic production. This proposal aims to encourage domestic manufacturing and investment. The OBBBA includes provisions for a new deduction under Section 168(n) for investments in domestic factory property, with construction beginning after January 19, 2025, and prior to January 21, 2029, and placed in service before January 1, 2031.

·       Renamed and Modified GILTI/FDII: The global intangible low-taxed income (GILTI) regime has been renamed "Net CFC Tested Income" (NCTI), and the foreign-derived intangible income (FDII) regime has been renamed "foreign derived deduction eligible income" (FDDEI). The effective tax rate on NCTI is expected to increase to 12.6% in 2026, or 14% with foreign tax credit utilization. The effective tax rate on FDDEII is also expected to increase to 14% for tax years beginning after December 31, 2025.

·       Elimination of Section 899: A previously proposed controversial tax provision, Section 899, which could have imposed high tax rates on foreign companies from countries with "unfair taxes," was omitted from the final OBBBA legislation. This omission may provide clarity and relief for international businesses and investors.

·       Other Provisions: The OBBBA includes various other changes to international and domestic tax law, including an increase in the BEAT rate to 10.5% and preservation of the ability to use US tax credits to offset BEAT liability, according to the Tax Foundation. 

Please note: The exact implementation details of some of these provisions, such as the 15% corporate tax rate for domestic manufacturing, still require further guidance. Businesses are encouraged to consult with tax advisors to understand the full implications of the new tax laws on their specific situations. 

https://www.google.com/search?q=will+trump+grant+a+15%25+corporate+tax+for+foreign+companies+with+plants+already+in+the+us

Comments

Locating manufacturing plants in the US to make goods for US consumption will shorten supply chains and reduce transportation costs.

Norb Leahy, Dunwoody GA Tea Party Leader