Atlantic Project Cargo is informing you about the implementation of a 25% tariff on imported cars and car parts entering the United States. We are ready to support you in assessing the impact of these changes and identifying effective cost-management strategies. These may include tariff classification reviews, trade agreement utilization, and exploring alternative sourcing or routing options. Our licensed customs broker is also available to assist you with US import regulations.
On April 3, 2025, the Federal Register published a proclamation titled “Adjusting Imports of Automobiles and Automobile Parts Into the United States,” announcing the implementation of a 25% tariff on imported automobiles and automobile parts.
On April 3, 2025, a 25% tariff on imported cars came into effect. For car parts, the tariff will apply no later than May 3, 2025. This tariff is in addition to any existing fees or duties. No drawbacks are available concerning the duties imposed under this proclamation.
Any car or car part that is not considered “domestic” (as defined by regulation 19 CFR 146.43) and is subject to this new duty must enter a US foreign trade zone under “privileged foreign status” (as defined by 19 CFR 146.41).
When cars or parts leave the trade zone and enter the US for sale or use, they become subject to standard import duties based on their classification under US tariff laws (HTSUS).
Cars that qualify under the USMCA trade agreement can apply the 25% tariff only to the value of parts made outside the US. Importers must provide proof of the US-made content.
The 25% tariff will not apply to USMCA-eligible car parts until a system is set up to calculate tariffs only on non-US content. The exception does not apply to automobile knock-down kits or parts compilations, it only applies to individual car parts.
If an importer falsely claims a higher US-made content to lower the tariff, the full 25% tariff will apply to the entire vehicle. This penalty will apply retroactively to all similar imports of the same importer.
Within 90 days, the government will create a process to add more car parts to the tariff list if their imports “threaten US industry.” Decisions on new additions will be made within 60 days of a request. Also, the government may issue additional rules to clarify and enforce these tariffs.
If any past rules or executive orders conflict with this proclamation, this new policy takes precedence.
Our team will continue to monitor the situation and share updates if more details emerge. For the latest tariff-related information, ask at [email protected]
