United States imposes 25% tariff on foreign-made auto imports
26 March 2025
In a move intended to foster domestic manufacturing, US President Trump has placed a 25% tariff on all auto imports. The tariff, to take effect from April 2nd, will be charged in addition to any existing tariffs and import duties.
The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components).
Importers of automobiles under the United States-Mexico-Canada Agreement (USMCA) will be given the opportunity to certify their US content, and systems will be implemented such that the 25% tariff will only apply to the value of their non-US content. USMCA-compliant automobile parts will remain tariff-free until the US administration establishes a process to apply tariffs to their non-US content.
The new tariffs are expected to result in $100 billion in annual revenues for the US government.
Source: The White House