On March 26, 2025, President Trump issued a presidential proclamation imposing a 25 percent additional tariff on imported cars, light trucks, and certain vehicle parts. These tariffs are based on the results of a 2019 Section 232 investigation and newly-provided information from the Commerce Secretary, among other things.
ST&R offers a three-pronged approach for avoiding, mitigating, and/or recovering these and other tariffs. For more information on which of these strategies might be most effective for your business, please contact ST&R.
Products Subject to Tariffs
The tariff applies to passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans), light trucks, and certain automobile parts (engines and engine parts, transmissions and powertrain parts, and electrical components). Affected products are specified in Annex 1 of this Federal Register notice.
Adding Products to Scope
The International Trade Administration has announced procedures for extending the Section 232 tariff to additional automobile parts. The presidential proclamation establishing this tariff directed the DOC to allow for such additions. Domestic producers of auto parts will be able to submit requests during two-week windows that will open four times annually in January, April, July, and October.
New! In March 2026, the International Trade Administration announced that it will accept requests to add more imported automobile parts to the scope from April 1 - April 14. Read more here.
Effective Dates
- The tariff on automobiles took effect as of 12:01 a.m. EDT on April 3, 2025.
- The tariff on automobile parts took effect as of 12:01 a.m. EDT on May 3, 2025.
USMCA-Originating Automobile & Automobile Parts
Automobiles: For automobiles that qualify for preferential tariff treatment under USMCA, importers may submit documentation identifying the amount of U.S. content in each model imported, and the 25 percent tariff will then apply exclusively to the value of the non-U.S. content of the automobile. U.S. content is identified as "parts wholly obtained, produced entirely, or substantially transformed in the United States."
If CBP determines that the declared value of non-U.S. content of an automobile overstates U.S. content, the 25 percent tariff will apply to the full value of the automobile. In addition, the 25 tariff tariff will be applied retroactively from April 3, 2025, to the full value of all automobiles of the same model imported by the same importer.
Automobile Parts: For automobile parts that qualify for preferential treatment under the USMCA, the 25 percent tariff will not apply until the secretary of commerce establishes a process to apply the tariff exclusively to the value of the non-U.S. content and publishes same in a Federal Register notice.
Additional Details
- Drawback is not available.
- Any automobile or automobile part, except those that are eligible for admission under domestic status, that is subject to this tariff and is admitted into a U.S. foreign-trade zone on or after the effective date must be admitted as privileged foreign status. Upon entry for consumption such articles will be subject to the duty rates related to the applicable HTSUS subheading in effect at the time of admittance into the FTZ.
Official Documents