President Trump Announces 25% on Autos and Light Trucks

Mar. 27, 2025
By: Hannah B. Kreinik

The Trump administration published a proclamation launching new tariffs of 25% on automobiles, light trucks, and auto parts under Section 232 of the Trade Expansion Act of 1962. The Presidential proclamation can be found here.  

The proclamation is effective on April 3^rd for vehicles, but it does not specify a start date for the new duties on auto parts other than such duties will be imposed no later than May 3^rd. The 25% duties will remain in effect until expressly reduced, modified or terminated, and will be assessed in addition to any other duties, fees or exactions applicable to the entry.

Vehicles eligible for USMCA treatment will be able to certify the U.S. content of the vehicles and subtract that value from the value of the imported vehicle, resulting in only the non-U.S. value of the vehicle being subject to the additional 25%. Importers, however, must carefully document their calculations of non-U.S. value because if found to be inaccurate, then CBP will apply the 25% tariff to the full value of the vehicle.  

Parts qualifying for preferential treatment under the USMCA are exempt from the 25% duty until the Secretary of Commerce and CBP establish a process to apply the duty on the value of the non-U.S. content of such parts. This process must be published in the Federal Register before becoming effective. Similarly, within 90 days of this proclamation the Secretary is to establish a process for expanding the list of automobile parts subject to the 25% duty. This process will allow domestic parts manufacturers to request that the Secretary add certain parts to the list of parts subject to the 25% duties.

As with the other recent tariffs imposed by President Trump, duty drawback will not be allowed. Also, automobiles and parts subject to the 25% duties that are admitted into a foreign trade zone must be admitted as “privileged foreign status” unless they qualify for admission under “domestic status.”

Importers should be prepared for additional tariff actions from the Trump administration as the President hinted at duties on lumber and pharmaceuticals. This should not come as a surprise for the trade community as President Trump has asserted that importers should expect some form of reciprocal tariffs coming soon on April 2^nd (please see our article on the issue here).

The attorneys at Barnes, Richardson & Colburn are here to keep your company posted on the latest Trump administration actions.