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American Focus > Blog > The White House > Adjusting Imports of Automobiles and Autombile Parts Into the United States – The White House
The White House

Adjusting Imports of Automobiles and Autombile Parts Into the United States – The White House

Last updated: March 26, 2025 4:50 pm
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Adjusting Imports of Automobiles and Autombile Parts Into the United States – The White House
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BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

1. On February 17, 2019, the Secretary of Commerce submitted a report regarding the impact of passenger vehicle imports—ranging from sedans to light trucks—and specific automobile components on the United States’ national security. Under the Trade Expansion Act of 1962, the Secretary concluded that these imports were entering the U.S. in quantities and under conditions that could endanger our national security.

2. In Proclamation 9888, issued on May 17, 2019, I supported the Secretary’s assessment and directed the United States Trade Representative to negotiate with countries like the European Union and Japan to mitigate this risk.

3. Unfortunately, these negotiations did not yield any agreements that could address the concerns outlined in section 232 of the Trade Expansion Act.

4. I also instructed the Secretary to keep a close eye on automobile imports and report any developments suggesting further action might be necessary.

5. The Secretary has since indicated that national security concerns have not only persisted but have intensified. The COVID-19 pandemic has exacerbated vulnerabilities in global supply chains, revealing weaknesses that threaten our domestic industrial base. American automotive manufacturers have faced severe supply chain disruptions, labor shortages, and increased competition from foreign entities, which have benefitted from unfair subsidies. Today, only about half of the vehicles sold in the U.S. are produced domestically, which jeopardizes both our industrial base and national security. Furthermore, the U.S. share of global automobile production has stagnated, as has employment within the domestic automotive sector.

6. Additionally, agreements made prior to Proclamation 9888, such as revisions to the United States-Korea Free Trade Agreement and the USMCA, have not produced the desired benefits. The threat posed by imports continues to escalate, and previous legislative actions have failed to eliminate this risk.

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7. Considering the updated analysis provided by the Secretary, it has become evident that the importation of automobiles and specific parts still poses a significant threat to our national security. Therefore, I find it imperative to impose tariffs on these imports to mitigate this risk.

8. To prevent circumvention of these tariffs and ensure the effectiveness of this proclamation, I will establish processes to identify additional automobile parts that may also require tariffs.

9. Section 232 mandates that in such circumstances, the President must take necessary actions to adjust imports to safeguard national security.

10. The Trade Act of 1974 empowers the President to implement measures affecting import treatment, including modifications to tariff rates.

NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States, including section 301 of title 3, United States Code; section 604 of the Trade Act of 1974, as amended; and section 232 of the Trade Expansion Act of 1962, as amended, do hereby proclaim as follows:

(1) Effective from 12:01 a.m. Eastern Daylight Time on April 3, 2025, all imports specified in Annex I or any future annex of this proclamation will be subject to a 25 percent tariff. This applies to automobiles and designated automobile parts, continuing until modified or terminated. This tariff is in addition to any other applicable duties or fees.

(2) For automobiles qualifying for preferential tariff treatment under the USMCA, importers may submit documentation to identify the U.S. content in each model. “U.S. content” refers to the parts that are sourced or substantially transformed in the U.S. The Secretary may then approve these imports to apply the 25 percent tariff solely to the non-U.S. content value.

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(3) If U.S. Customs and Border Protection (CBP) finds discrepancies in the reported value of non-U.S. content, the full tariff will be applied retroactively and prospectively to the automobile’s entire value.

(4) The 25 percent tariff will not apply to automobile parts eligible for preferential treatment under the USMCA until a process is established for assessing tariffs based on non-U.S. content.

(5) For clarity, this does not apply to automobile knock-down kits or parts compilations, but only to individual parts as defined in Annex I.

(6) The Secretary, in collaboration with the United States International Trade Commission and CBP, will modify the Harmonized Tariff Schedule of the United States (HTSUS) as needed to implement this proclamation.

(7) Within 90 days of this proclamation, the Secretary will establish a process to include additional automobile parts under these tariffs, based on requests from domestic producers or industry associations demonstrating that imports threaten national security.

(8) Any automobile or part entering a U.S. foreign trade zone after this proclamation must be admitted as “privileged foreign status” and will be subject to the applicable tariff rates.

(9) The Secretary will continue to monitor imports and will review their status concerning national security, informing the President of any developments that may necessitate further action.

(10) No drawback will be available for duties imposed under this proclamation.

(11) The Secretary may issue regulations and guidance consistent with this proclamation.

(12) CBP is authorized to take necessary actions to administer these tariffs.

(13) Any previous proclamations inconsistent with this proclamation are superseded to that extent.

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IN WITNESS WHEREOF, I have hereunto set my hand this twenty-sixth day of March, in the year of our Lord two thousand twenty-five, and of the Independence of the United States of America the two hundred and forty-ninth.

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