The U.S. began imposing an additional 25% duty on imports of certain auto parts from all countries on goods entered for consumption or withdrawn from a warehouse for consumption on or after 5/3/125 (12:01 am ET). According to the executive order, the auto parts are engines and engine parts, transmissions and powertrain parts, and electrical components.
The HTS codes of the impacted auto parts, listed in subdivisions (g) 90 FR 14705, are included CSMS # 64916652 & CSMS # 64913145.
The 25% additional duty on imports of certain sedans, sport utility vehicles, crossover utility vehicles, minivans, cargo vans and light trucks began on 4/3/25. The impacted HTS codes are listed in subdivision (b) of 90 FR 14705.
Per a 4/29/25 executive order, the total additional tariffs stacked on certain products result in additional duties that exceed “what is necessary to achieve the intended policy goals”. Automobile and automobile parts subject to 25% duty imposed by the March 26th Proclamation (90 FR 14705) will not be subject to the additional tariffs imposed on:
- Goods from Canada or Mexico.
- Section 232 duties imposed on steel and aluminum imports.
If other tariffs besides Section 232 on aluminum and steel and IEEPA on Canada and Mexico are applicable to automobile and automobile parts that are already subject to the tariffs of the March 26th proclamation, the other tariffs will stack with the tariffs imposed on the automobile and automobile parts.
In addition, a fact sheet was released last week outlining incentives for domestic automobile production. The new proclamation adjusts automobile tariffs to reward manufacturers who assemble vehicles in the U.S. by offering tariff offsets based on the proportion of U.S.-made content in their vehicles. For April 3, 2025-April 30, 2026, manufacturers can offset 3.75% of a car’s MSRP, and for May 1, 2026-April 30, 2027, 2.5%, if they meet U.S. production thresholds.
These regulations are subject to change. Please reach out to your Mallory Alexander representative or our M-PACT consulting team for more information about the new HTS codes or tariff stacking.