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White House to Impose 25% tariffs on Imports of Autos and Certain Auto Parts
President Trump today, March 26, signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose a 25% tariff on imports of automobiles and certain automobile parts.
The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key auto parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary.
However, the White House said importers of automobiles under the United States-Mexico-Canada Agreement (USMCA) will be given the opportunity to certify their U.S. content and systems will be implemented such that the 25% tariff will only apply to the value of their non-U.S. content. USMCA-compliant auto parts will remain tariff-free until the Secretary of Commerce, in consultation with Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.S. content.
The White House proclamation said under Section 232 of the Trade Expansion Act of 1962 gives the president the authority to adjust imports into the U.S. in quantities or under circumstances that threaten to impair national security.
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Meanwhile, NCBFAA will continue to keep our members updated about the U.S. tariffs through the Monday Morning eBriefing and eblasts, and a dedicated IEEPA Tariffs webpage on our website.
Attention: The Monday Morning eBriefing (MMeB) and other communications of the NCBFAA are the exclusive property of the Association. Unauthorized use by any person or firm which is not a member in good standing is strictly prohibited.
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