From the SEMA Washington, D.C., office
President Trump unveiled his plans for tariffs on the automotive industry on March 26, impacting completed light-duty vehicles (cars, trucks and SUVs) along with some parts and components. According to the White House, a 25% tariff will be imposed on imported automobiles on April 3 and a later date for automotive parts (no later than May 3).
The High-Level Details:
- A 25% tariff will be applied on complete, imported passenger vehicles and light trucks
- Key automobile parts--engines, transmissions, powertrain parts and electrical components--are also subject to the tariff.
- Importers of automobiles under the United States–Mexico–Canada Agreement (USMCA) will be given the opportunity to certify their United States content, and the 25% tariff will only apply to the value of their non-United States content.
Automobile parts that are USMCA-compliant will remain tariff-free until the United State Secretary of Commerce, in consultation with United States Customs and Board Protection (CBP), establishes a process to apply tariffs to their non-United States content.
Resources
- President Trump's Proclamation on Adjusting Imports of Automobiles and Automobile Parts in the United States
- White House Fact Sheet
What We're Watching For
The May 3 deadline for clarity on automotive parts looms large for the aftermarket industry. Much could change in the next month, and SEMA will be working with the Trump Administration to convey what our industry needs and how the tariffs will impact our members' ability to deliver high-quality, American-made parts and products to customers.
President Trump's order also establishes a framework for additional parts to be subject to tariffs. The Secretary of Commerce will have 90 days to establish a process to include additional automobile parts within the scope of the tariffs.
- Domestic producers of auto parts and industry associations will be able to request that the tariffs be expanded to cover additional parts that have "increased in a manner that threatens to impair the national security."
When the Secretary receives such a request from a domestic producer or industry association, they must consult with the U.S. International Trade Commission and CBP before issuing a determination regarding whether the parts should be subject to tariffs within 60 days of receiving the request.
Stay Tuned
SEMA continues to monitor this developing story and share any additional updates as they are received. If you have any additional questions, contact Eric Snyder, SEMA's senior director for federal government affairs, at erics@sema.org.