BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
1. On February 17, 2019, the Secretary of Commerce submitted a report detailing an investigation into the implications of importing passenger vehicles—including sedans, SUVs, and various types of light trucks—and certain automobile parts on the national security of the United States. This was conducted under section 232 of the Trade Expansion Act of 1962. The Secretary’s findings led me to concur that the volume and conditions of these imports posed a potential threat to our national security.
2. In my Proclamation 9888, issued on May 17, 2019, I agreed with the Secretary’s assessment and instructed the United States Trade Representative to engage in negotiations to address this pressing issue with certain countries. Unfortunately, these negotiations did not yield the desired results. I also directed the Secretary to keep a vigilant eye on these imports to ensure that any emerging threats to our national security were swiftly reported.
3. Fast forward to Proclamation 10908 on March 26, 2025, where I received new information confirming that the threat from imports of automobiles and their parts remained significant. Consequently, I deemed it essential to implement a tariff system aimed at curbing these imports to protect national security. The tariffs commenced on April 3, 2025, for automobiles, with those on automobile parts set for May 3, 2025.
4. Within Proclamation 10908, I also recognized the need for a systematic approach to identify and impose tariffs on additional automobile parts. This was crucial to prevent any circumvention of the established tariffs and to uphold the integrity of our national security measures. I directed the Secretary to establish this process within 90 days of the proclamation.
5. Continuing the efforts outlined in Proclamation 10908, I have received advice from the Secretary indicating that additional measures are necessary to fulfill our national security objectives.
6. I believe it is imperative to refine the current monetary fee and tariff system established in Proclamation 10908 to enhance its effectiveness at mitigating the threat posed by these imports.
7. The revised system I propose would link the monetary fees imposed on imports of automobile parts to their utilization in the domestic assembly of automobiles. This change is designed to not only reduce dependence on foreign manufacturing but also to bolster domestic production, stimulate research and development, and ultimately create jobs in the automotive sector—all crucial for a robust defense industrial base.
8. Section 232 empowers the President to adjust imports that threaten national security, thus allowing for necessary interventions.
9. Furthermore, Section 604 of the Trade Act of 1974 gives the President the authority to adjust import treatment within the Harmonized Tariff Schedule of the United States (HTSUS) as needed.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States, 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; and section 232 of the Trade Expansion Act of 1962, do hereby proclaim as follows:
(1) To effectively address the national security threats from automobile imports, I find it necessary to modify the existing system from Proclamation 10908. This modification involves reducing duties on automobile parts that account for 15 percent of the value of an assembled automobile in the U.S. for one year, and 10 percent for an additional year, as follows:
(a) For automobiles assembled in the U.S., manufacturers can apply for an import adjustment offset amount applicable to section 232 duties on automobile parts based on this schedule:
(i) From April 3, 2025, to April 30, 2026, manufacturers may apply for an offset amount equal to 3.75 percent of the aggregate Manufacturer’s Suggested Retail Price (MSRP) of all automobiles assembled in the U.S.
(ii) From May 1, 2026, to April 30, 2027, the offset amount decreases to 2.5 percent of the aggregate MSRP.
(b) The percentages reflect the total duties owed when applying a 25 percent duty to parts accounting for the specified percentages of an automobile’s MSRP. Only vehicles assembled in the U.S. qualify for this calculation. The offset amount can only be utilized by authorized importers linked to that manufacturer, capped at the total tariff liability under Proclamation 10908.
(2) (a) Within 30 days of this order, the Secretary shall establish a submission process for manufacturers seeking an import adjustment offset amount, requiring:
(i) Documentation certifying projected assembly numbers and plant locations;
(ii) Certification of projected tariff costs due to imported parts, broken down by direct costs and supplier costs;
(iii) Documentation detailing the requested import adjustment offset amount;
(iv) Identification of eligible importers of record for the offset amount;
(v) Certification by a senior officer affirming the accuracy of the submitted information.
(b) Upon verifying a manufacturer’s submission, the Secretary shall approve the application and inform U.S. Customs and Border Protection (CBP) to facilitate the offset amount administration.
(3) The Secretary, along with the Secretary of the Treasury and the CBP Commissioner, shall develop necessary regulations and guidance to implement this proclamation and Proclamation 10908, including standards for determining U.S. content.
(4) The Secretary, in consultation with the U.S. International Trade Commission and CBP, will assess whether modifications to the HTSUS are needed and may publish necessary adjustments in the Federal Register.
(5) CBP shall begin administering approved offsets promptly, requesting necessary information from importers to implement the manufacturer’s offsets.
(6) If an importer claims and receives an import adjustment offset exceeding the approved amount, CBP may impose penalties as legally allowed.
(7) The Secretary will continue monitoring automobile imports, consulting with relevant officials to review their national security implications and inform the President of any emerging issues or necessary adjustments to the duty rates.
(8) Any conflicting provisions from previous proclamations or Executive Orders are superseded by this action. This proclamation shall align with the Executive Order of April 29, 2025, concerning tariffs on imported goods.
IN WITNESS WHEREOF, I have hereunto set my hand this
twenty-ninth day of April, 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.
DONALD J. TRUMP
