Adjusting Imports of Automobiles and Automobile Parts into the United States

On March 26, 2025, President Trump announced the imposition of tariffs on imports of automobiles and automobile parts into the United States.¹ The Proclamation on Automobile Imports aims to promote automobile production in the United States and address threats to national security stemming from the United States’ reliance on the import of automobiles and automobile parts. A 25% tariff will be imposed on automobile imports starting April 3, 2025. Likewise, a 25% tariff will be imposed on imports of automobile parts on a date published in the Federal Register, but no later than May 3, 2025.²

The tariffs are the result of a previous investigation initiated under President Trump’s first administration pursuant to Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862). Specifically, on February 17, 2019, the Secretary of Commerce provided the President a report which found that imports of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks (collectively, automobiles) and certain automobile parts (engines and engine parts, transmissions and powertrain parts, and electrical components) (collectively, automobile parts) were entering the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States. 

As a result of the Secretary of Commerce’s report, on May 17, 2019, President Trump issued Proclamation 9888 directing the United States Trade Representative (USTR), in consultation with other executive branch officials, to pursue agreements addressing national security threats caused by imports of automobiles and certain automobile parts from the European Union, Japan, and any other country the USTR deemed appropriate.³

The Proclamation further details the Secretary of Commerce’s findings that national security concerns regarding imports have escalated since the February 2019 report, exacerbated by the COVID-19 pandemic, which revealed vulnerabilities in global supply chains and undermined the United States’ ability to maintain a resilient domestic industrial base. Moreover, existing agreements, like the USMCA, have not sufficiently mitigated the threat posed by imports.

Based on the findings of the previous investigation of automobile imports and the continuing threat to national security, President Trump concludes that tariffs are necessary to adjust automobile imports to protect national security. As stated above, a 25% tariff will be imposed on specified automobile imports starting April 3, 2025, unless modified or terminated. Likewise, imports of automobile parts will be imposed no later than May 3, 2025. The Secretary is tasked with ongoing monitoring of imports, enacting any necessary regulations or guidance, and informing the President if further actions are needed regarding national security. Likewise, the United States Customs and Border Protection (CBP) is authorized to take any appropriate measures to administer the tariffs imposed by the Proclamation.

Buchanan has a team of international trade and national security attorneys, and government relations professionals ready to help U.S. manufacturers with U.S. trade remedy laws and trade policy.