Toronto, May 2, 2025
On March 26, 2025, US President Donald Trump issued Proclamation 10908 on Adjusting Imports of Automobiles and Automobile Parts into the United States, imposing a 25 percent ad valorem tariff on passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks and parts from all countries, under Section 232 of the Trade Expansion Act of 1962.
The tariff on automobiles took effect April 3, 2025, with the 25 percent tariff on auto parts taking effect on, or after, 12:01 a.m. ET on May 3, 2025.
For a complete list of affected HS tariff classifications refer to 90 FR 14705.
Note: Auto parts that are eligible for preferential treatment under the United States-Canada-Mexico Agreement (USMCA) free trade will not be subject to the tariff, other than automobile knock-down kits or parts compilations.
US Customs and Border Protection issued Cargo Systems Messaging Service CSMS # 64913145 – Guidance: Import Duties on Certain Automobile Parts to outline:
ENTRY FILING INSTRUCTIONS
The 25 percent tariff will take effect with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on May 3, 2025.
The Section 232 automobile measures apply to all imported parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks classifiable in the provisions of the HTSUS enumerated in subdivision ( g ) or meet the criteria in subdivision ( h ), as described under headings 9903.94.05 and 9903.94.06, respectively. See attached Automobile Parts HTS List (90 FR 14705).
9903.94.05: Applies to parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks classifiable in the provisions of the HTSUS enumerated in subdivision ( g ).
25 percent additional ad valorem rate of duty
9903.94.06: Applies to all entries of articles classifiable under HTSUS provisions listed in subdivision ( g )
- that are eligible for special tariff treatment under the United States-Mexico-Canada Agreement (USMCA), other than automobile knock-down kits or parts compilations; or
- that are not passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks.
0 percent additional ad valorem rate of duty
SPECIAL TARIFF TREATMENT
The duty provided in heading 9903.94.05 is in addition to any special rate of duty under a free trade agreement or preference program listed in general note 3( c )( i ) to the tariff schedule, except as provided for in subdivision ( h ) of U.S. note 33 to subchapter III of chapter 99 of the HTSUS.
CHAPTER 98 PROVISION
Goods for which entry is claimed under a provision of chapter 98, and which are subject to the additional duties prescribed herein shall be eligible for and subject to the terms of such provision and applicable CBP regulations, except that duties under subheading 9802.00.60 shall be assessed based upon the full value of the imported article.
No claim for entry or for any duty exemption or reduction shall be allowed for the automobile parts in subdivision ( g ) of this note under a provision of chapter 99 that may set forth a lower rate of duty or provide duty-free treatment, taking into account information supplied by CBP, but any additional duty prescribed in any provision of this subchapter or subchapter IV of chapter 99 shall be imposed in addition to the duty in heading 9903.94.05.
All antidumping, countervailing, or other duties and charges applicable to such goods shall continue to be imposed in addition to the duty in heading 9903.94.05.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
