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.
