US Imposes 25% Tariff on Imported Vehicles and Auto Parts Starting April 3, 2025

The United States has implemented a 25% import tariff on foreign vehicles, effective April 3, 2025. Previously, the import tax on cars was 2.5%. Auto parts will be subject to the new tariff starting May 3, 2025. The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary. This decision may impact exports to the US, particularly in the automotive parts sector. Importers of automobiles under the United States-Mexico-Canada Agreement will be given the opportunity to certify their U.S. content and systems will be implemented such that the 25% tariff will only apply to the value of their non-U.S. content.