Tariffs and Trade
Tariffs & Trade Impacting the Automotive Aftermarket Latest News
The Auto Care Association is actively monitoring this evolving situation and will provide updates as new information emerges. Check this page regularly for the latest developments.
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Auto Care Tariff Calculator
Use our tariff calculator to help you identify which recent U.S. tariffs may apply cumulatively to your products.
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We welcome your feedback to help us better understand and assess the impact of these tariffs on our industry and businesses. Please share with us by contacting Angela Chiang, director, international affairs, at angela.chiang@autocare.org.
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Current Status
On March 26, 2025, President Trump issued a proclamation imposing a 25% tariff on imports of automobiles (effective April 3, 2025) and certain automobile parts (tentatively effective May 3, 2025).
Current Status
Effective March 7, 2025, imports from Canada and Mexico that meet USMCA rules of origin are exempt from the additional IEEPA duties. Imports that do not satisfy USMCA rules of origin are subject to a 25% tariff rate. Energy products from Canada and potash from Mexico and Canada are subject to a reduced tariff rate of 10%.
Effective March 4, 2025, imports from China are subject to a 20% tariff rate, an increase from a 10% tariff rate that went into effect on Feb. 4, 2025.
Note that many products imported from Canada and Mexico were already duty-free under MFN rates, making USMCA declarations unnecessary. Under the new policy, importers must document and ensure USMCA compliance (if eligible) to be exempt from the IEEPA tariffs. Otherwise, the 25% IEEPA tariff would apply.
Current Status
On April 1, 2025, President Trump issued an Executive Order under the International Emergency Economic Powers Act (IEEPA) to establish a 10% baseline tariff and country-specific reciprocal tariffs on imported goods.
On April 9, 2025, President Trump issued an order delaying the country-specific reciprocal tariffs effective April 10, 2025. The country-specific reciprocal tariffs originally went into effect on April 9, 2025 and will be suspended for 90-days, after which the country-specific rates in Annex I will apply.
The baseline 10% tariff remains in effect for all products from all countries during this time, except for products that are covered by the exemptions listed in the original order (see below).
However, the 90-day pause does not apply to China due to their retaliatory tariffs on U.S.-origin goods. China's reciprocal tariff rate has increased from the original 34% to 84% and now to 125%. This applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on April 10, 2025.
Current Status
As of March 12, 2025, the expanded Section 232 tariffs on steel and aluminum are now in effect. All imports of steel and aluminum are subject to a 25% tariff, and previous country exemptions and tariff-rate quotas have been eliminated.
The tariffs also apply to certain derivative products based on the steel and aluminum content. The product exclusion process has been terminated, meaning previously approved exclusions are no longer valid.
Current Status
The Section 301 China tariffs implemented in 2018-2019 remain in effect, with most tariff rates unchanged since their initial implementation. While some product exclusions have been extended, the majority have expired, except for a limited set scheduled to expire on May 31, 2025.
Additionally, a new 20% tariff on imports from China was imposed under IEEPA, taking effect on Mar. 4, 2025.
Section 232 Tariffs Announced on Medium- and Heavy-Duty Vehicles and Parts
President Trump has issued a presidential proclamation imposing Section 232 tariffs on imports of medium- and heavy-duty vehicles (MHDVs) and parts (MHDVPs), effective Nov. 1, 2025 at 12:01 a.m. EDT.
Tariff Rates
- Medium- and heavy-duty vehicles and parts (listed in Annex I): 25% ad valorem
- Buses (HTSUS 8702): 10% ad valorem
- Applies to all countries unless specifically exempted and is in addition to existing duties, taxes, and fees.
USMCA Treatment
- Medium- and heavy-duty vehicles that qualify for USMCA may be eligible for partial exemption, with the tariff applied only to non-U.S. content.
- Medium- and heavy-duty parts qualifying under USMCA are temporarily exempt until Commerce establishes a separate process to assess only non-U.S. content.
- Knock-down kits are not eligible for exemption.
Import Adjustment Offset Program
- Vehicle manufacturers that assemble medium- and heavy-duty trucks in the U.S. can receive a tariff credit (offset) to reduce some of the new tariffs on imported parts.
Tariff Stacking Rules
If goods are subject to Section 232 MHDV and MHDVP tariffs:
- Other Section 232 tariffs (e.g., steel, aluminum, copper) do not apply.
- IEEPA tariffs imposed on Canada (fentanyl), Mexico (fentanyl), Brazil, or India (Russian oil) do not apply.
Option to Opt-In to Auto or MHDV Tariff
- Importers may elect to classify eligible parts under either the auto or MHDV tariff for preferential tariffs or un-stacking rules
- Opt-in excludes goods classifiable under HTSUS Chapters 72, 73 or 76
- Part must be used for automobile- or MHDV- related production or repair activity in the U.S., as attested to by certification from the importer of record.
- Auto Care is seeking clarification on how this option will be implemented, including any restrictions or qualification requirements, and will share additional information as soon as it becomes available.
Other Provisions
- The Secretary of Commerce may add additional parts in the future if imports are found to threaten national security.
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