Administration to Ease Auto and Parts Tariffs

Apr. 29, 2025
By: Marvin E. McPherson

As the automotive industry has been planning for the implementation of section 232 duties on imports of automobiles and parts thereof, the administration appears to have been planning modifications to the duties.

During a press conference, (at 13:00 min) Secretary Scott Bessent stated that President Donald Trump is set to sign an executive order on to? ease auto tariffs. There are no details on how much or how the auto tariffs will be reduced, however, Sec. Bessent alluded to credits towards reshoring American auto manufacturing.

Meanwhile, reports are circulating that modifications are being planned to accomplish a few things. First, goods subject to automotive 232 duties would not also be subject to other 232 duties. This is especially relevant with respect to steel and aluminum 232, since many auto parts are made of steel or aluminum. Second, the exemption for USMCA-qualifying goods would be maintained. Third, automotive producers would receive credits based on the MSRP of cars built in the United States to offset tariffs. The mechanism for this offset is not yet clear.

Tariffs and their application continue to change. If you have any questions regarding the application of tariffs to imports do not hesitate to contact any attorney at Barnes, Richardson & Colburn, LLP.