In an Executive Order published on March 26, 2025, President Trump announced an additional 25% tariff for passenger vehicles, light trucks, and certain automobile parts. This tariff will be in addition to any other applicable duties, fees, and charges for such vehicles and parts.

Importers of vehicles that qualify for preferential treatment under USMCA will be eligible to submit documentation that identifies the amount of “U.S. content” in each model imported into the United States. Once submitted and approved by the Secretary of Commerce, the importer would only be required to pay the 25% tariff on the non-U.S. value of the automobile.

The additional tariff will apply to passenger vehicles and light trucks beginning at 12: 01 a.m. Eastern Time on April 3, 2025.

The tariffs on certain automobile parts, including engines, engine parts, transmissions, powertrain parts, and electrical components, will take effect at a later date, but no later than May 3, 2025.

The “Adjusting Imports of Automobiles and Automobile Parts into the United States” Executive Order can be found here:
https://www.whitehouse.gov/presidential-actions/2025/03/adjusting-imports-of-automobiles-and-autombile-parts-into-the-united-states/