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Tariffs

Tariff Developments Affecting the U.S. Auto Industry: A Comprehensive Overview

Strategic Insights

— 2 min read

A flurry of new tariff developments has affected the U.S. auto industry in the past year, including reciprocal tariffs on nearly all imports, 25% tariffs on autos and auto parts, and 50% tariffs on aluminum, steel, and semifinished copper products and derivatives. The Motor and Equipment Manufacturers Association (MEMA) has provided a comprehensive overview of these developments, emphasizing the need for auto industry companies to track the latest developments, check their supply chains for tariff vulnerabilities, and take reasonable care to ensure customs declarations are correct. Companies can also mitigate tariff risks by monitoring quarterly tariff inclusion requests, considering how to make tariffs work for them, and preserving rights to refunds.

Key Takeaways:

  • Tariff developments affecting the U.S. auto industry include reciprocal tariffs on nearly all imports, 25% tariffs on autos and auto parts, and 50% tariffs on aluminum, steel, and semifinished copper products and derivatives.
  • Companies in the auto industry can mitigate tariff risks by tracking the latest developments, checking their supply chains for tariff vulnerabilities, and taking reasonable care to ensure customs declarations are correct.
  • Importers must report the correct classification, valuation, and country of origin to avoid facing penalties, and should confirm that the special USMCA rules of origin are satisfied and have the USMCA Certificate of Origin in their possession.
  • Companies should monitor quarterly tariff inclusion requests and submit responsive or rebuttal comments within 14 days, and consider how to make tariffs work for them by seeking antidumping and countervailing duties.
  • The U.S. auto industry is facing a potential need to seek refunds on tariffs imposed under the International Economic Emergency Powers Act (IEEPA), which have been found to be unlawful by lower courts.

Statistics:

  • 25% tariffs are imposed on autos and auto parts.
  • 50% tariffs are imposed on aluminum, steel, and semifinished copper products and derivatives.
  • 10% tariffs are imposed on parts of passenger vehicles and light trucks under the trade deal with the UK.
  • 100,000 passenger vehicles annually are subject to up to 10% tariffs under the trade deal with the UK.
  • Up to 25% tariffs are imposed on aluminum and steel and derivatives under the trade deal with the UK.
  • 79 TW Alexander Drive is the location of the Research Commons, Suite 200 Research Triangle Park, NC 27709 Phone.
  • 4501 is the suite number at the Research Commons location.

Sources:

  • Motor and Equipment Manufacturers Association (MEMA)
  • Butzel Long, P.C. law firm
  • U.S.-Mexico-Canada Agreement (USMCA)
  • International Economic Emergency Powers Act (IEEPA)
  • Supreme Court
  • Butzel Long, P.C. disclaimer (July 31, 2025)

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