War Threatens Major U.S. Auto Exports Stream
The Middle East imports a sizable share of vehicles made in the states. It’s unclear how the Iran War could affect the keystone market for U.S. automakers.
Data show the majority share of U.S. auto exports last year was concentrated among the top 10 destinations, which include the United Arab Emirates and Oman.
Pexels/Tom Fisk
Based on the estimated number of vehicles the U.S. exported last year, the war in Iran could have a significant impact on American automakers.
The West Coast Shipping data on container-based car exports shows 16% of them headed to the Middle East, up about 21% over 2024.
The region imported the third highest volume of U.S.-made vehicles after Europe and Africa, according to the company, which provides vehicle logistics services to dealers, automakers, auctions and other clients.
Its numbers, as of last October and based on January-through-July activity, indicate U.S. vehicle exports rose about 17% over the period to just over 779,000 units. Top destinations included the United Arab Emirates and Oman, both top-10 importers, the New Jersey-based company said, citing Trademo statistics.
The United Arab Emirates is a “stable” hub for distribution to other Middle Eastern countries, West Coast Shipping said at the time, indicating that many vehicles are typically shipped from there to Saudi Arabia, Oman and Qatar.
In fact, the company said the majority share of U.S. auto exports is concentrated among the top 10 destinations, which include UAE in the No. 3 spot and Oman at No. 10.
The war, which commenced on Feb. 28, shows no sign of winding down and is disrupting shipping routes for an array of products, not only oil but including components and raw materials. The conflict stands to exacerbate the already expensive repercussions brought by U.S. trade tariffs and the federal pullback of electric-vehicle subsidies and incentives.
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