Additional Duties Assessed on Certain Vehicles and Parts
On March 26, 2025, President Trump issued a proclamation imposing a 25% rate of duty on certain imports of passenger vehicles and lights trucks, and parts thereof. The duties are being assessed under Section 232 of the Trade Expansion Act of 1962.
The Federal Register notice was published on April 3, 2025. 2025-05930.pdf
CBP issued CSMS # 64624801 on April 2, 2025 with operational instructions for imports of passenger vehicles and light trucks. For the associated vehicles, the duty is effective on April 3, 2025.
CBP has not issued an operational instruction for parts since those are not effective until May 3, 2025.
The following information is based on a review of the proclamation and is subject to change as CBP releases additional information. Schenker will continue to monitor for updates and share details as they become known. Please reach out to your Schenker contact with questions.
Effective Date
- April 3, 2025 – passenger vehicles and light trucks
- May 3, 2025 – certain parts
Vehicles
The Order provides an exemption for vehicles classified in the associated HTSUS numbers that are not passenger vehicles or light trucks. Importers may apply to the Secretary of Commerce for authorization to apply duty to the value of the non-U.S. content of the vehicles. An
exemption exists for vehicles that were manufactured more than 25 years prior to the year of the entry date.
The Federal Register notice provides the HTSUS numbers for affected vehicles.
Parts
HTSUS 9903.94.05 is applicable to all entries of automobile parts from all countries for the parts in the associated list. These include engines and engine parts, transmissions and powertrain parts, electrical components, and parts of passenger vehicles and light trucks.
Parts are exempted under HTSUS 9903.94.06, applicable to entries of articles in the associated list of classifications that are:
- Eligible for special tariff treatment under the USMCA, other than automobile knock-down kits or parts compilations; or
- The articles are not parts of passenger vehicles and light trucks.
The Federal Register notice provides the HTSUS numbers for affected parts.
Chapter 98
Goods eligible for entry under a Chapter 98 provision are eligible for the benefits of the associated provision, except that duties under subheading 9802.00.60 will be assessed on the full value of the imported article.
Free Trade Agreement / Preference Programs
Other than articles eligible for the USMCA (as noted above), articles that are eligible for other free trade agreement / preference programs are subject to the duties assessed under this order. While the claim can still be made to exempt the article from the regular rate of duty, the rate assessed to the country of origin as a reciprocal rate of duty is applicable and must be paid.
Foreign Trade Zone
The subject vehicles must be admitted under privileged foreign status, unless eligible to be admitted under domestic status.
Drawback
No drawback is available for these duties.