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Imports of Automobiles and Automobile Parts Into the United States

  • Writer: IFF, inc.
    IFF, inc.
  • Apr 3
  • 2 min read

Summary of "Adjusting Imports of Automobiles and Automobile Parts Into the United States"

The presidential proclamation introduces 25% tariffs on imported automobiles and certain automobile parts to protect national security by reducing reliance on foreign automotive imports and supporting domestic production. This decision follows an investigation by the Secretary of Commerce, which found that foreign subsidies, supply chain vulnerabilities, and aggressive industrial policies threaten U.S. economic and defense interests.

New Tariffs on Automobiles & Auto Parts

  1. Automobiles (Passenger Vehicles & Light Trucks)

    • A 25% tariff applies to all imported passenger vehicles, including sedans, SUVs, crossovers, minivans, cargo vans, and light trucks.

    • Effective April 3, 2025 at 12:01 a.m. EDT.

  2. Automobile Parts

    • A 25% tariff applies to specific imported parts like engines, transmissions, tires, electronic systems, and chassis.

    • Effective no later than May 3, 2025, with details published in the Federal Register.

    • The Secretary of Commerce will allow domestic manufacturers to request additional parts be added to the tariff list.

USMCA & Tariff Adjustments

  • Vehicles & parts with significant U.S. content (as defined by USMCA) may qualify for a tariff reduction.

  • Importers must prove the percentage of U.S. content in their vehicles or parts.

  • If approved, the 25% tariff applies only to the non-U.S. content.

  • Overstating U.S. content results in the full 25% tariff on the entire vehicle and possible penalties.

Tariff Headings & Their Applications

9903.94.01 – Standard Tariff on Passenger Vehicles & Light Trucks

  • Applies a 25% tariff to all imported passenger vehicles & light trucks from all countries.

  • Includes sedans, SUVs, crossovers, minivans, cargo vans, and light trucks.

9903.94.02 – Exemptions & Adjustments for Non-Passenger Vehicles & USMCA Vehicles

  • Excludes vehicles that are NOT passenger vehicles or light trucks from the 25% tariff.

  • Applies USMCA-based tariff adjustments, allowing reduced tariffs for vehicles with high U.S. content.

9903.94.03 – USMCA Passenger Vehicles & Light Trucks

  • Applies to USMCA-eligible vehicles where importers can prove the percentage of U.S. content.

  • If approved, the 25% tariff applies only to the non-U.S. content.

9903.94.04 – Classic & Vintage Vehicles (25+ Years Old)

  • Are exempt from the 25% tariff to passenger vehicles & light truck

  • Manufactured 25+ years before the import date.

9903.94.05 – Automobile Parts Tariff

  • Applies a 25% tariff on specific imported auto parts, including engines, powertrains, electronic components, and tires.

  • The Secretary of Commerce may expand the list of parts subject to tariffs.

9903.94.06 – USMCA & Non-Passenger Vehicle Parts

  • Covers auto parts that qualify for USMCA preferential treatment (excluding knock-down kits and assembled parts compilations).

  • Also applies to non-passenger vehicle parts under different tariff rules.

For further details refer to: 2025-05930.pdf

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