The automotive tariffs of Donald Trump, President of the United States, are applied at a rate of 25% and avoid duplication of certain tariff charges on auto parts.
On April 29, 2025, Donald Trump signed a new Executive Order. This modifies the application of certain tariffs for products from Mexico and Canada.
Automotive tariffs
The measure seeks to prevent the same product from paying multiple tariffs. This is key for sensitive sectors such as auto parts, steel and aluminum.
Impact on Mexican auto parts
The National Auto Parts Industry (INA) reported the immediate effects. Based on the order and Customs and Border Protection (CBP) guidance, the following is confirmed:
- Mexican auto parts included in Proclamation 10908 will be duty-free if they qualify under the USMCA.
- Those that do not qualify will also be exempt from additional duties, such as those imposed under IEEPA and Section 232.
Practical Example
Previously, a non-qualifying steel auto part could pay up to three tariffs. Now only one will apply: the one for auto parts. This significantly reduces the tax burden.
Special cases: steel and aluminum
There is one exception. It applies when an auto part is not listed in Proclamation 10908 and qualifies as a derivative of steel and aluminum at the same time. In that case, the following will apply:
- 25% on steel content.
- 25% on aluminum content.
However, the IEEPA tariff will not apply if the product does not qualify under USMCA.
Example of an exception
An insulating tube with steel and aluminum parts will pay two duties of 25%. No more.
Retroactive application and next steps
These adjustments apply retroactively from March 4, 2025. Changes to the U.S. tariff system (HTSUS) are expected to be published by May 16. Guidelines for possible refunds will also be defined.
Key date: May 3
Although the tariffs were announced on April 3, they will take effect on May 3, 2025 at 12:01 am (Eastern Time).
Benefit to industry
This measure avoids duplicative tariffs. This protects the North American automotive supply chain.