On March 26, 2025, the President issued Proclamation 10908, imposing a 25% tariff on certain passenger vehicles and light trucks under Section 232. This tariff applies to imports from all countries and applies to goods entered for consumption or withdrawn from a warehouse after 12:01 a.m. EST on April 3rd, 2025. The annex to the proclamation, published in the Federal Register on April 3, 2025, details the HTS codes affected by these tariffs.
The relevant HTS subheadings are listed in Chapter 87 and are in Annex I of the proclamation. However, certain vehicles are exempt, including those that are not classified as passenger vehicles or light trucks under Chapter 87 and passenger vehicles and light trucks manufactured at least 25 years prior to the date of entry.
Importers may request approval from the U.S. Commerce Department to apply the 25% tariff exclusively to the value of the non-U.S. content of passenger vehicles and light trucks. If approved, the U.S. content will be exempt from the additional duty.
No drawback is available with respect to the additional duties imposed under this Executive Order.
Goods entered under a Chapter 98 provision, and which are subject to the additional duties as stated in this order, will be eligible for and subject to the terms of such provision and applicable CBP regulations, except for duties under subheading 9802.00.60, which will be assessed on the full value of the imported article.
Passenger vehicles and light trucks subject to the additional Section 232 duties cannot claim duty exemptions or reductions under Chapter 99 provisions that offer lower rates or duty-free treatment. Any additional duty noted in any provision of this subchapter or subchapter IV of chapter 99 will be imposed in addition to the duty in headings 9903.94.01 and 9903.94.03.
All antidumping, countervailing, or other duties and charges applicable to such goods will continue to be imposed in addition to the duty in headings 9903.94.01 and 9903.94.03.
Starting at 12:01 a.m. EST on May 3, tariffs on auto parts listed in the annex will take effect. These parts are classified under various subheadings of Chapters 40, 70, 73, 83, 84, 85, 87, 90, and 94.
Goods that fall under the listed subheadings that aren’t auto parts will be exempt, as well as goods that qualify for preferential treatment under USMCA. USMCA auto parts are exempt from the auto parts tariffs until the commerce secretary and CBP establish a procedure to exempt U.S. content and publish a notice in the Federal Register.
For the full Federal Register notice and Annex I lists, visit:
Federal Register – Adjusting Imports of Automobiles and Automobile Parts into the United States