New Tariffs on Autos and Parts: A Timeline for Importers

Car Brake

Hello, trade crew! As your go-to U.S. Customs Broker, I’m here to steer you through a fresh update that’s revving up the import scene. On April 3, 2025, the Federal Register published Proclamation 10932, titled "Adjusting Imports of Automobiles and Automobile Parts Into the United States" read it here. Signed by President Donald J. Trump on April 1, 2025, this proclamation slaps new tariffs on autos and parts to protect American manufacturing and address national security concerns tied to trade deficits. With effective dates at the wheel, let’s roll through the timeline and what it means for your imports!

A Global Impact: Autos from Everywhere

This proclamation targets automobiles and parts from all countries—China, Canada, Mexico, the EU, Japan, you name it—under Section 232 of the Trade Expansion Act of 1962. It builds on earlier trade actions (like reciprocal tariffs) but zeroes in on the auto sector, citing threats to U.S. economic security from foreign overcapacity. Here’s how it’s played out.

Timeline of Events and Effective Dates

• February 17, 2019 – The Investigation Begins:

  • Commerce Report Initiated: The Department of Commerce started probing whether auto imports threatened national security under Section 232. This set the stage, though no action was taken then.

• May 31, 2024 – Findings Confirmed:

  • Commerce Report Delivered: The Secretary of Commerce found that imports of autos and parts (HTSUS Chapters 87, 84, 85, etc.) impaired U.S. security by hollowing out domestic production. Submitted to the prior administration, it lingered until now.

• April 1, 2025 – Proclamation Signed:

  • Proclamation 10932: Signed by President Trump and published April 3, 2025, this imposes a 25% ad valorem duty on automobiles (HTSUS Chapter 87) and a 10% duty on auto parts (HTSUS Chapters 84, 85, 87, etc.), atop existing duties. Canada and Mexico get a partial pass—autos qualifying under USMCA Rules of Origin (General Note 11) are exempt.

  • Initial Effective Date: April 15, 2025, at 12:01 a.m. EDT—applies to goods entered for consumption or withdrawn from warehouse after this date, unless loaded for shipment before April 1, 2025.

• April 15, 2025 – Tariffs Hit the Road:

  • Implementation via HTSUS: New subheadings (e.g., 9903.87.01 for autos at 25%, 9903.87.02 for parts at 10%) will reflect these duties, with USMCA exemptions noted. No phase-in—just full speed ahead.

  • Effective Date: April 15, 2025, at 12:01 a.m. EDT—mark your calendars!

What’s Covered?

• Automobiles: 25% duty on vehicles (HTSUS 8703, 8704, etc.), except USMCA-qualifying ones from Canada/Mexico.

• Auto Parts: 10% duty on components (e.g., engines in 8407, transmissions in 8708), no USMCA exemption unless part of a qualifying vehicle.

• Exclusions: Goods in transit before April 1, 2025, and USMCA autos from Canada/Mexico meeting Rules of Origin (labor value content, steel/aluminum requirements).

• Stacking: These add to existing tariffs—like China’s 20% opioid duty or the 10% reciprocal tariff from EO 14257 (effective April 5, 2025).

What This Means for You

• China Importers: Autos hit 25% (plus 20% opioid, 10% reciprocal—ouch!), parts at 10% (plus others). No USMCA relief here.

• Canada/Mexico Importers: USMCA autos stay duty-free from this order, but non-qualifying vehicles face 25%, and parts get 10% (on top of prior 15% drug duties unless exempted).

• EU/Japan/Others: 25% on autos, 10% on parts, plus the 10% reciprocal tariff from April 5—double trouble!

• April 15, 2025 onward: These rates kick in, so costs spike unless you’ve got USMCA cover.

Your Action Plan

1. Confirm USMCA Status: Canada/Mexico importers—verify Rules of Origin to dodge the 25% on autos. Parts? Check if they’re tied to exempt vehicles.

2. Recalculate Duties: Layer these (25% autos, 10% parts) with prior tariffs (e.g., China’s 20%, reciprocal 10%)—math time!

3. Beat the Clock: Goods loaded before April 1, 2025, skip this round—check your shipping docs.

4. Stay Sharp: HTSUS updates drop April 15—let us ensure your entries are spot-on.

We’re Your Pit Crew

This auto tariff revs up efforts to bolster U.S. manufacturing, but it’s a bumpy ride for importers. That April 15, 2025, effective date is your starting line. Whether it’s China, Canada, Mexico, or beyond, we’ll help you navigate classifications, stack duties, and keep compliant. Got questions? Hit us up—let’s keep your imports cruising!

Happy importing, and drive safe!