White House announces adjustments to tariffs on imports of automobile parts
Offsets to a portion of tariffs for U.S.-assembled vehicles
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.