White House announces adjustments to tariffs on imports of automobile parts

Offsets to a portion of tariffs for U.S.-assembled vehicles

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April 30, 2025

The White House on April 29, 2025, posted on its website a proclamation signed by President Trump to adjust tariffs on imports of automobile parts into the United States.

According to a White House fact sheet, the proclamation offers offsets to a portion of tariffs for U.S.-assembled vehicles. Manufacturers will receive a tariff offset:

  • From April 3, 2025, to April 30, 2026: Equal to 3.75% of the Manufacturer’s Suggested Retail Price (MSRP) of U.S. production (which reflects the total duty that would be owed when a 25% duty is applied to parts accounting for 15% of an automobile’s MSRP value)
  • From May 1, 2026, to April 30, 2027: Equal to 2.5% of the MSRP of U.S. production (which reflects the total duty that would be owed when a 25% duty is applied to parts accounting for 10% of an automobile’s MSRP value)

The proclamation states that the Secretary of Commerce will within 30 days establish a process by which manufacturers may seek an import adjustment offset amount.

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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