in effect
This is Presidential Proclamation 10908 (signed March 26, 2025), a trade action issued under Section 232 of the Trade Expansion Act of 1962, which lets the President adjust imports found to threaten national security. It directs the Secretary of Commerce and U.S. Customs and Border Protection (CBP) to impose and administer new tariffs on imported cars and certain car parts, and to set up processes for adding more parts later.
It puts a 25% tariff, on top of any existing duties, on imported automobiles (starting 12:01 a.m. EDT on April 3, 2025) and on certain automobile parts (starting on a date to be published, but no later than May 3, 2025). Cars that qualify under the USMCA trade agreement can have the 25% applied only to the value of their non-U.S. content if the importer documents the U.S.-made share; qualifying USMCA parts are exempt until Commerce sets up a similar content-based process. If CBP finds an importer overstated a car’s U.S. content, the 25% applies to the car’s full value, retroactively to April 3, 2025, and going forward, for every car of that same model from that importer. Within 90 days, Commerce must create a process to add more parts to the tariff, including at the request of U.S. producers, with decisions due within 60 days of a request. No duty drawback (refund) is available on these tariffs.
Companies that import cars and covered parts into the U.S. — and by extension automakers, parts suppliers, and dealers — must pay the added 25% duty, with special documentation rules for USMCA-qualifying goods. Domestic automobile and parts producers (and their industry associations) can petition to have additional parts added to the tariff list. U.S. government bodies — the Commerce Department, CBP, and the International Trade Commission — are tasked with setting the rules, updating the tariff schedule, and enforcing the measure.