VISIT OUR OTHERS EXCLUSIVE PORTALS
Mobility Portal, Spain
Date: April 3, 2025
Mobility Portal Favicon
By Mobility Portal
United States

Trump’s 25% Auto Tariffs to Hit $460 Billion in Vehicle and Parts Imports Annually

New measures will affect over 150 categories including EV components, engines and computers, with tariffs starting May 3; baseline 10% duties begin April 5.

The U.S. administration under President Donald Trump is moving forward with sweeping 25% tariffs on vehicle and auto parts imports, targeting an annual trade volume of over $460 billion, according to a Reuters analysis of newly listed tariff codes in an updated Federal Register notice.

Set to begin on May 3, the measure expands a previous proclamation by including nearly 150 categories of auto parts, such as engines, transmissions, lithium-ion batteries, and other major components. Everyday parts like tires, spark plugs, and brake hoses are also included.

Additionally, the tariff list encompasses automotive computer systems, although these are classified under a broad four-digit code that includes all computers, from laptops to disk drives.

That category represented $138.5 billion in imports in 2024, per U.S. Census Bureau data. However, there is no separate tariff code that isolates computers specifically designed for automotive use, making it difficult to assess their exact trade volume.

Volkswagen Group vehicles destined for export to the U.S. and U.K. are already accumulating at ports like Emden, Germany, as the auto industry braces for a significant trade disruption. The total for vehicle and parts imports—excluding the computer category—stood at $459.6 billion in 2024.

Auto parts tariffs won’t stack with baseline import duties

The Section 232 national security tariffs on autos and parts will remain separate from Trump’s newly announced 10% baseline tariff on all U.S. imports, set to take effect on April 5.

Senior administration officials clarified that goods under the auto-specific tariff regime will not be subject to additional reciprocal tariffs.

The move is part of a broader protectionist pivot by the Trump administration, which has introduced reciprocal duties targeting countries accused of deploying non-tariff trade barriers.

A Commerce Department process will soon allow domestic manufacturers to petition for more parts to be added to the tariff list. The notice also outlines that for imports complying with U.S.-Mexico-Canada Agreement (USMCA) rules of origin, only the non-U.S. content will be subject to the 25% duty.

These escalating measures mark a decisive shift in U.S. trade policy and could have deep implications for the global automotive industry, especially as it shifts toward electrification and more advanced digital components.

Separator Single Post

Leave a Reply

Your email address will not be published. Required fields are marked *