Trump starts tariffs on auto parts - which this means for buyers!

Trump starts tariffs on auto parts - which this means for buyers!

On May 3, 2025, the tariffs announced by President Trump came into force in the USA. These tariffs amount to 25 percent and have previously been put into force for imported cars, with the levy for finished vehicles since the beginning of April 2025. However, US manufacturers who assemble their cars within the United States can apply for a reimbursement of these tariffs under certain conditions.

The measure falls under Trump's strategy of strengthening domestic automotive production. He describes the tariffs as "small help" during a "short transition phase". He also emphasizes that basically almost every importer has to pay the 25 percent tariffs. An important detail that needs to be considered is that there is no additional tariffs on aluminum and steel for auto parts to avoid a double load on the manufacturers.

customs benefits for parts assembled in the USA

According to an executive order signed on April 29, 2025, there will be customs tariffs for vehicle parts that are assembled in the USA. These remuneration amounts to 3.75 percent of the recommended sales price (MSRP) for vehicles produced in the USA from April 3, 2025 to April 30, 2026. The following year, this value drops to 2.5 percent. After these two years there are no further customs remuneration.

For parts that fall under the trade agreement with Canada and Mexico (USMCA), it applies that they are excluded from the 25 percent tariffs, which is a relief for many manufacturers. About 50 percent of the vehicles sold in the USA are assembled outside the United States, and American manufacturers produce numerous models in countries such as Mexico.

trade conflicts and future developments

These new taxes come at a time when Trump also takes a close look at other economic sectors. On April 15, 2025, he initiated an investigation that deals with the dependence of the United States on imports of critical minerals. If the Ministry of Commerce determines that this dependency endangers national security, additional tariffs are conceivable.

In addition, Trump planned an expansion of the sectors -specific tariffs to semiconductors and other electronic products, which could have an impact on smartphones, laptops and other electronic articles. It remains to be seen whether and how these measures affect the automotive sector.

For more comprehensive information about the new tariffs on auto parts and the regulatory developments in the USA, further details can be found on the pages of and AHK USA are read.