During a press conference on March 26, 2025, President Trump announced a new 25% tariff on all imported automobiles and parts, effective April 3rd. The president then signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962.

The tariffs will apply to passenger vehicles and light-duty trucks, as well as key parts such as engines and transmissions. If the imported automobile qualifies for USMCA, importers can submit documents detailing the U.S. content. For more details, you can refer to the official White House proclamation and fact sheet.

In response to the announcement several countries have expressed strong opposition and are considering retaliatory measures. The EU delayed retaliatory tariffs on U.S. steel and aluminum tariffs imposed in March to mid-April and are now contemplating additional responses. In addition, Canada and Japan are preparing quick counteractions for April. President Trump then took to social media to propose much larger tariffs on the EU and Canada if they worked together to retaliate.

Changes continue to happen daily as the April 2nd U.S. reciprocal tariff date approaches. We are here to help! Please reach out to your Mallory Alexander representative with any additional questions.