The U.S. auto parts tariff is among those with the highest global impact.
Since Donald Trump assumed his second term as President of the United States on January 20, 2025, his administration has announced a series of tariffs. Among the sectors most affected is the automotive industry.
U.S. auto parts tariff
So far, several tariff measures have been confirmed that could directly affect operations in the automotive industry:
One of the main ones is a 25% tariff on the importation of automobiles and certain auto parts into the United States. This tax, known as the Auto Parts Tariff, applies to products from all countries. However, auto parts that comply with the USMCA rules of origin are exempt. However, that exemption could be modified to restrict it to U.S.-origin content only.
This 25% tariff applies to passenger cars, light trucks and certain auto parts
Exceptions: For imports of vehicles that qualify for preferential tariff treatment under the USMCA, tariffs may only apply to the non-U.S. content of the product.
Following are U.S. auto parts imports for January through May 2025, in millions of dollars, with year-over-year growth rates, according to Commerce Department data:
- Mexico: 34,001 (-4.9 percent).
- Canada: 7,800 (-8.7 percent).
- Japan: 6,072 (-3.8 percent).
- China: 5,824 (-7.0 percent).
- South Korea: 5,078 (-0.9 percent).
- World: 78,692 (-5.3 percent).
Japan and United Kingdom
On March 26, 2025, Trump announced tariffs of 25 percent on U.S. imports of automobiles and certain auto parts under Section 232 of the Trade Expansion Act of 1962. The tariffs went into effect for vehicles on April 3 and for auto parts on May 3, with partial exceptions for products that meet certain USMCA standards.
At the same time, the administration has negotiated specific agreements. An agreement has already been signed with the United Kingdom. Another was also announced with Japan, reducing the Auto Parts Tariff to 10% and 15%, respectively.
Metals
On the other hand, the Steel and Aluminum Tariff was doubled from 25% to 50% as of June 4, 2025. This measure applies to all steel and aluminum imports, regardless of their origin, although it does not include products subject to the Auto Parts Tariff.
In addition, the government imposed a 25% tariff on all imports from Mexico and Canada, except those that qualify under the USMCA. This measure, called the Mexico/Canada Tariff, was complemented by further increases: on July 10, 2025, a 35% tariff was imposed on imports from Canada, effective August 1.