In an Executive Order (EO) published on April 29, 2025, the White House announced that automobile manufacturers will be eligible to receive an import adjustment offset applicable to Section 232 duties on automobile parts for vehicles assembled in the United States.
The EO states that the Commerce Department will establish a process within 30 days for automobile manufacturers to apply for the import adjustment offset, and it will be based off the manufacturer’s suggested retail price (MSRP) value of automobiles assembled in the United States. This value will be 3.75% of the MSRP value from April 3, 2025, through April 30, 2026, and 2.5% from May 1, 2026, through April 30, 2027.
This import adjustment offset can only be used for duties on automobile parts under Section 232. Automobile manufacturers with approved offset may include suppliers within their supply chain to receive the import adjustment.
The “Amendments to Adjusting Imports of Automobiles and Automobile Parts into the Unites States” Executive Order can be read here:
https://www.whitehouse.gov/presidential-actions/2025/04/amendments-to-adjusting-imports-of-automobiles-and-automobile-parts-into-the-united-states/