White House announces 25% tariffs on automobile imports

The tariffs will take effect for automobiles on April 3, 2025, and for automobile parts, by no later than May 3, 2025.

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March 27, 2025

The White House on March 26, 2025, announced that President Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose a 25% tariff on imports of automobiles and certain automobile parts. This presidential proclamation aims to address what is deemed a critical threat to U.S. national security, following a report from the Secretary of Commerce that highlighted concerns due to the high volume of these imports.

According to a White House fact sheet (March 26, 2025), the tariffs will apply to imported passenger vehicles and light trucks, as well as key automobile parts. Importers claiming the United States-Mexico-Canada Agreement (USMCA) will be given the opportunity to certify their U.S. content such that the tariff will apply only to the value of non-U.S. content. 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.S. content.

The tariffs will take effect for automobiles on April 3, 2025, and for automobile parts on the date specified in the Federal Register, but no later than May 3, 2025.

For more information, contact a professional with KPMG Trade & Customs services:

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@pmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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