Tariffs and Trade
Tariffs & Trade Impacting the Automotive Aftermarket Latest News
The Auto Care Association is actively monitoring this evolving situation and will provide updates as new information emerges. Check this page regularly for the latest developments.
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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Current Status
As of Mar. 4, 2025, the 25% tariffs on imports from Canada and Mexico, initially postponed, are now in effect. The tariff on imports from China was initially set at 10% on Feb. 4, 2025, and increased to 20% on Mar. 4, 2025.
These tariffs, imposed under the International Emergency Economic Powers Act (IEEPA) through executive orders issued by President Trump on February 1, 2025, apply in addition to existing import duties and taxes, with no exemptions.
Current Status
The Section 301 China tariffs implemented in 2018-2019 remain in effect, with most tariff rates unchanged since their initial implementation. While some product exclusions have been extended, the majority have expired, except for a limited set scheduled to expire on May 31, 2025.
Additionally, a new 20% tariff on imports from China was imposed under IEEPA, taking effect on Mar. 4, 2025.
Current Status
On Monday, Feb. 10, 2025, President Trump signed a proclamation expanding the Section 232 tariffs on imports of steel and aluminum, eliminating all country exemptions and tariff-rate quotas.
The new steel and aluminum tariffs go into effect on Mar. 12, 2025. All previous country exemptions and product exclusions have been eliminated.
On Jan. 9, the Auto Care Association hosted the webinar “Trade and Tariffs in the Trump Administration: Policies, Impacts and Future Outlook.” Led by Patricia Paoletta and Kent Bressie, partners at HWG, the session analyzed the administration’s approach to reshaping global trade dynamics through tariffs and import restrictions aimed at addressing trade imbalances, protecting domestic industries and challenging unfair practices.
The webinar explored key trade statutes and their potential application under the incoming administration, focusing on tools such as the International Emergency Economic Powers Act (IEEPA), Section 301 and Section 232. These mechanisms address national security, unfair trade practices and broader economic challenges. Speakers include:
- Patricia Paoletta, Partner, HWG
- Kent Bressie, Partner, HWG
Latest News
Press Release Auto Care Association Responds to Trump Administration’s 25% Tariff on Steel, Aluminum Imports
Press Release Auto Care Association Responds to Trump Administration’s Sweeping Tariffs on Canada, Mexico, China
Global Trade and Supply Chain Blog
USTR Proposes Fees on Chinese Ships Entering U.S. Ports
[Requesting Member Feedback]
On Feb. 27, the Office of the U.S. Trade Representative (USTR) published a notice proposing new measures targeting China's growing dominance in the maritime, logistics, and shipbuilding sectors. The proposal includes significant port entry fees on Chinese shipping companies and any Chinese-built vessels that enter U.S. ports. It also introduces new requirements for a portion of U.S. exports to be transported on U.S.-built and U.S.-flagged vessels.
Given the potential impact on shipping costs for importers and exporters, as well as overall supply chain operations, the Auto Care Association is gathering member feedback to assess how these measures may affect the automotive aftermarket industry.
We encourage members to provide insights on how these new policies could affect your operations, shipping costs, and supply chain efficiency. Your input will help shape our industry’s response in comments submitted to USTR.
Background
In March 2024, five U.S. labor unions petitioned the U.S. Trade Representative (USTR) to investigate China’s policies and practices aimed at dominating the maritime, logistics, and shipbuilding industries. Following its Section 301 investigation, USTR determined that China’s actions have negatively impacted the U.S. shipbuilding industry and broader economic interests.
The investigation found that China’s government-driven strategies have pushed out foreign competitors, reduced opportunities for market-driven businesses and workers, and created dependencies that weaken supply chain resilience. These practices have made it more difficult for U.S. businesses to compete, discouraged investment in key industries, and increased economic risks by heightening reliance on China in critical sectors.
As a result, USTR concluded that China’s actions place an unreasonable burden on U.S. commerce and warrant a policy response.
Proposed Fees on Chinese-Linked Maritime Services
To counteract China’s market advantages, USTR proposes a fee structure applied to vessels entering U.S. ports. Any fees imposed would be cumulative and in addition to existing or proposed fees:
- Chinese Maritime Transport Operators: A fee of up to $1 million per vessel entry or $1,000 per net ton, whether or not the vessel was built in China.
- Operators Using Chinese-Built Vessels: A fee of up to $1.5 million per vessel entry or a sliding scale ranging from $500,000 to $1 million per vessel entry, based on the percentage of Chinese-built ships in their fleets.
- Operators with Pending Chinese Ship Orders: Additional fees between $500,000 and $1 million per vessel entry, based on the percentage of vessels ordered from Chinese shipyards for delivery within two years.
To incentivize the use of U.S.-built vessels, the proposal includes a refund of up to $1 million per entry for operators employing U.S.-built ships.
New Proposed Requirements on U.S. Exports
USTR also seeks to reduce U.S. reliance on Chinese shipping by gradually increasing the percentage of exports transported on U.S.-flagged and U.S.-built vessels:
- Effective Immediately: At least 1% of U.S. exports must be transported on U.S.-flagged vessels.
- After 2 Years: At least 3% of exports must be transported on U.S.-flagged vessels.
- After 3 Years: At least 5% of exports must be transported on U.S.-flagged vessels, with a minimum of 3% on U.S.-built vessels.
- After 7 Years: At least 15% of exports must be transported on U.S.-flagged vessels, with a minimum of 5% on U.S.-built vessels.
Timeline and Next Steps
- Feb. 21, 2025: Comment period opens.
- March 10, 2025: Deadline to submit requests to appear at the hearing.
- March 24, 2025: Deadline for written comments. Submit comments using the USTR Electronic Portal under docket USTR-2025-0002.
Call for Member Feedback – Port Fees Impact
Auto Care Association is soliciting member feedback to assess the potential effects of these new measures on the automotive aftermarket industry. We are interested in the following (but not limited to):
- Potential cost increases for importing and exporting goods.
- Supply chain disruptions caused by shipping restrictions.
- Availability and pricing of alternative vessel operators.
- Feasibility of compliance with export mandates.
- Overall competitiveness of U.S. aftermarket parts and products in global trade.
Your insights are essential in shaping the industry's response to these proposed measures. Please submit your feedback by March 13, 2025.
We also encourage your company to file comments directly with USTR using the USTR Electronic Portal under docket USTR-2025-0002.
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