President Trump Imposes 25% Tariff On Automobiles, Certain Auto Parts

On March 26, 2025, President Trump signed an executive order Adjusting Imports of Automobiles and Automobile Parts into the United States (EO) announcing a 25% tariff on automobiles and certain automobile parts. This EO invokes Section 232 of the Trade Expansion Act of 1962, stating that the President has deemed it necessary to impose tariffs on these products because they threaten the national security of the United States. At the time of signing, the White House stated it would take effect in addition to other tariffs, which is confirmed in the EO: “the […] tariff is in addition to any other duties, fees, exactions, and charges applicable to such imported automobiles and certain automobile parts articles.”

The 25% tariff takes effect on April 3, 2025, for automobiles and “no later than” May 3, 2025 for key automobile parts. The EO specifies that “automobiles” include imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks. Automobile parts targeted include engines, transmissions, powertrain parts, and electrical components. It establishes a process to expand tariffs on additional products if necessary.

Importers of automobiles under USMCA will be given the opportunity to certify their US content and systems will be implemented such that the 25% tariff will only apply to the value of the non-US content. USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with US Customs and Border Protection, establishes a process to apply tariffs to their non-US content. 

For more information, please contact Samantha Rocci, Director of Federal Affairs, at srocci@rvia.org.

(Looking for the latest Canada and Mexico tariff developments? View our article here.)