Autos and Auto Parts 232 Tariffs
Current Status
On March 26, 2025, President Trump issued a proclamation imposing a 25% tariff on imports of automobiles (effective April 3, 2025) and certain automobile parts (tentatively effective May 3, 2025).
Tariff Rate, Effective Date
Tariff Rate, Effective Date
Tariff Rate
- A 25% ad valorem tariff is imposed (in addition to existing duties and fees).
- Exceptions for U.S.-content under USMCA (see details below)
Effective Dates
- Passenger Vehicles and Light Trucks: April 3, 2025
- Auto Parts: No later than May 3, 2025 (exact date to be announced)
Countries Subject to the Tariff
Countries Subject to the Tariff
Imports from all countries are included in the order with exceptions for U.S.-content under USMCA (see details below).
Products Covered
Products Covered
The following products are covered within the scope of this order:- Passenger Vehicles: sedans, SUVs, crossovers, minivans, cargo vans
- Light Trucks
- Auto Parts: engines, transmissions, powertrain parts and electrical components
Duty Drawback
Duty Drawback
According to the presidential order, duty drawback is not available for the tariffs on imports of autos and auto parts.
Treatment of USMCA Imports
Treatment of USMCA Imports
Autos:
For vehicles that qualify for USMCA preferential tariff treatment, importers may submit documentation identifying the amount of U.S. content. If approved, the 25% tariff would apply to the value of the non-U.S. content.
Incorrect declarations may result in the tariff applying to the full value of the vehicle (regardless of the actual U.S. content).
Auto Parts:
For auto parts that qualify for USMCA preferential tariff treatment, tariffs are delayed until the administration establishes a process to apply the tariff exclusively to the value of the non-U.S. content. More information will be released in a forthcoming Federal Register notice.
The tariff does not apply to auto knock-down kits or parts compilations.
Product Expansion and Monitoring
Product Expansion and Monitoring
Within 90 days, the Secretary of Commerce will establish a process for including additional auto parts to tariff list based on requests from domestic manufacturers or industry associations. The Secretary will review requests and make a determination within 60 days.
The Secretary of Commerce will continue to monitor import trends and assess whether the tariff remains necessary.
Background
In May 2018, the Department of Commerce (“Commerce”) under the first Trump administration initiated an investigation to determine the effect of imported autos and auto parts on national security.
In Feb. 2019, Commerce released its final report, finding that excessive imports are “causing a weakening of our internal economy that may impair the national security.” Tariffs were not imposed at that time.
In the 2025 proclamation, President Trump stated that the situation has worsened due to global supply chain disruptions and that national security concerns have escalated due to increasing foreign competition and foreign government subsidies.
Has your business been impacted by Tariffs?
We welcome your feedback to help us better understand and assess the impact of these tariffs on our industry and businesses. Please share with us by contacting Angela Chiang, director, international affairs, at angela.chiang@autocare.org.
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