Adjusting Imports Of Automobiles And Automobile

The tariffs broadly change the cost of importing vehicles and parts, while favoring qualifying U.S. content under the United States-Mexico-Canada Agreement.

What the order does ​

• Applies an additional 25% tariff to covered automobiles starting April 3, 2025, and to covered parts by May 3, 2025.
• Allows qualifying United States-Mexico-Canada Agreement automobiles to be taxed only on their non-U.S. content after Commerce approval.
• Temporarily exempts qualifying United States-Mexico-Canada Agreement parts until Commerce creates a process to tax their non-U.S. content.
• Applies the tariff to a vehicle’s full value, retroactively and prospectively for the same model and importer, when U.S. Customs and Border Protection finds U.S. content was overstated.
• Directs Commerce to create a process within 90 days for adding more automobile parts to the tariffs.
• Requires Commerce to keep monitoring imports and advise the president whether further action or tariff removal is warranted.
• Bars importers from receiving duty drawback refunds for these tariffs.

Who it affects ​

• Automobile and automobile-parts importers.
• Foreign vehicle and parts manufacturers selling into the United States.
• U.S. automakers, parts producers, and industry associations seeking tariffs on additional imported parts.
• Importers of vehicles and parts qualifying for United States-Mexico-Canada Agreement preferences.