U.S. Announces 25% Tariff on Imported Vehicles and Certain Automotive Parts
The U.S. announced a 25% tariff on imports of automobiles and certain automobile parts this week that will soon take effect, according to a release from the Auto Care Association.
An action taken under Section 232 of the Trade Expansion Act of 1962, the reason for the tariff has been cited as national security concerns due to the increase in imports of autos and auto parts.
The tariff covers imports from all countries, with exceptions for U.S.-content under USMCA. Products that will be impacted by the tariff includes passenger vehicles such as sedans, SUVs, crossovers, minivans, and cargo vans; light trucks; and auto parts such as engines, transmissions, powertrain parts, and electrical components.
Tariffs on passenger vehicles and light trucks will take effect April 3. An exact date has yet to be announced for auto parts, but tariffs will kick in for them no later than May 3.
Within 90 days, the Secretary of Commerce will establish a process for including additional auto parts to the tariff list, based on requests from domestic manufacturers or industry associations. These requests will be reviewed, and a determination reached within 60 days.
