President Trump Places 25 Percent Tariff on Auto and Certain Auto Part Imports
President Donald Trump signed an executive order that will impose a 25 percent tariff on automobile and certain automobile-parts imports. The tariff will be assessed on top of all other pre-existing import tariffs. The president argues that such measures are needed to strengthen the United States' domestic industrial base and national security.
The tariffs will go into effect for fully assembled vehicles on April 3, 2025. Tariffs on certain auto parts will go into effect on a date determined by the U.S. Secretary of Commerce, but that date must occur before May 3, 2025.
The auto parts to which the tariff will apply are the following:
- Engines and engine parts
- Transmissions and powertrain parts
- Electrical components
The executive order also instructs the Secretary of Commerce to establish a system through which other auto parts could be added to the list of parts subject to the 25 percent tariff.