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The American auto industry has faced stiff competition from foreign manufacturers for years. It’s a vital sector that has employed so many Americans who are proud to see their products on the road.
The White House announced new tariffs on imported automobiles and auto parts that President Donald Trump says will protect America’s auto industry, preserve national security, and bring in $100 million in revenue. The president is invoking Section 232 of the Trade Expansion Act of 1962 to place a 25% tariff on imported automobiles and parts. The tariffs will take effect in April but no later than early May.
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“The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary,” the White House announced in a press release.
There are carve-outs in the tariffs for imports from Mexico and Canada based on the amount of American-made content the vehicles contain. That allowance depends on the certification of U.S. content in these automobiles and their parts, and the tariffs on these imports will be delayed until the administration figures out the certification process.
“USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.
