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Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

Michigan Law Firm - Warner Norcross + Judd LLP

On March 26, 2025, President Donald Trump announced a new set of 25% tariffs on all automobiles imported as of midnight April 3, 2025. But the tariffs issued will be imposed on more than just automobiles. The tariffs will also apply to certain automobile parts. As with other recent tariffs, the announcement gives us general information on what to expect, and details will be issued in the coming days and months.

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As of April 3, all vehicles imported into the U.S. will be subject to a 25% tariff. These tariffs will be imposed on sedans, sport utility vehicles, crossover utility vehicles, minivans, light trucks and cargo vans.

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At some point before May 3, 2025, the 25% tariff will also apply to vehicle parts including engines, engine parts, transmissions, powertrain parts and electrical components.   

Auto parts that qualify for USMCA will be subject to an exemption until the Secretary of Commerce and the CBP are able to establish a process to apply this 25% tariff on the value of the non-U.S. portion of such parts.

Importers of vehicles can apply for USMCA treatment by identifying the amount of U.S. content in each model imported. But such importers must take care because an inaccurate submission could result in imposition of the tariff on the full value of the vehicle retroactively and prospectively to all same model imports by the same importer.

This 25% tariff is cumulative, meaning it will be imposed in addition to any other applicable tariffs.

There will be no duty drawbacks available for these tariffs.

Within 90-days, the Secretary of Commerce will create a process for adding more auto parts to the list subject to these tariffs. 

Full details on the list of auto parts to be included is expected in the coming days.

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These new tariffs are in keeping with the administration’s stated purpose of imposing broad tariffs with little to no exclusions or exemptions. Warner’s Automotive Industry Group and Supply Chain Industry Group attorneys are ready to help you with these latest tariffs.

Automotive

Supply Chain

Senior Counsel

Adam D. Bruski

Aida Dismondy

Partner

Homayune A. Ghaussi

Laura N. You

It’s More Than Just a Car — Auto Tariffs and Auto Parts

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It’s More Than Just a Car — Auto Tariffs and Auto Parts

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