Tariff Update: US Announced 25% Tariffs on Non-US Autos and Auto Parts
Tariff Update: US Announced 25% Tariffs on Non-US Autos and Auto Parts
-(5).png "Tariff Update: US Announced 25% Tariffs on Non-US Autos and Auto Parts")
On March 26, President Trump signed an executive order instituting 25% tariffs on various automobiles made outside of the United States, to go into effect April 3, 2025 at 12:01am. Similar tariffs will be imposed on non-US auto parts at a date no later than May 3, 2025.
The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary. USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.S. content.
As there is no such thing as a fully-US made care given the integration of supply chains, the final implementation of these tariffs and details on what is or is not included is still emerging and may change ahead of April 3.