White House issued fact sheet on imposing 25% tariffs under Trade expansion act.
Aim is to minimize the threat to US national security posed by importation of autos.
Tariff Application
25% tariff applies to imported passenger vehicles such as sedans, SUVs, and minivans.
Also applies to key automobile parts such as engines, transmissions, powertrain parts.
Tariffs may be expanded to be imposed upon additional parts if deemed necessary.
USMCA auto importers can certify US content, tariff apply to value of non-US content.
Automobile parts that are USMCA compliant will not be subject to imposition of the 25% tariff until a process is developed to apply the tariff to their non-US content.
New tariffs are designed to ensure that the US can sustain its domestic industrial base.
Protection and strengthening of the US automotive sector, addressing stagnation of US auto industry while foreign automobile industries have expanded, is another tariff goal.
Apr. 2025 White House Federal Register
On Apr. 3, 2025, White House published Proclamation 10908 in the federal register.
On Apr. 29, 2025, White House issued proclamation, Amendments to adjusting imports of automobiles and automobile parts into the US; issued fact sheet on proclamation.
Offset to portion of tariffs for automobile parts used in US-assembled vehicles equal to 3.75% of manufacturer’s suggested retail price (MSRP) of US production for next year.
Then equal to 2.5% of US production the year after (May 1, 2026 to Apr. 30, 2027).
Percentages reflect duty owed when 25% duty applied to 15% of value of US-assembled automobile in 1st year, 10% value of US-assembled automobile in 2nd year.
All other automobile imports will still be subject to the 25% tariff; proclamation sets strict penalties for importers who claim tariff reduction in excess of approved amounts.
In Apr. 2025, White House ordered removal of some cumulative tariffs, see #252883.
In May 2025, Senate sent letter damning tariff effect on housing crisis, see #253189.
May 2025 White House Federal Register
On May 2, 2025, White House published Proclamation 10925 in the federal register.
