UPDATED: May 1, 2025

Tariff Policy Update from the Trump Administration

The Trump Administration has revised its tariff assessments on automobiles. Beginning May 3, 2025, a 25% tariff will apply to all automobiles and automobile parts imported into the United States. However, automakers will be eligible to receive tariff credits for certain auto parts—approximately equivalent to 15% of the value of vehicles assembled within the U.S.

In a related move, the Administration has confirmed it will not impose stacked tariffs on automobiles. This decision prevents automakers from being charged duties on both entire vehicles and the individual materials used in their production. As a result, no tariffs will be assessed on aluminum, steel, or other materials required for automobile manufacturing for at least the next two years.

Additionally, effective May 2, 2025, the Administration will begin imposing duties on imported goods valued under $800. These items, previously exempt under the de minimis threshold, will now be subject to a duty of either $100 per item or 120% of the item’s declared value—whichever is greater.

Updated Reciprocal Tariff Summary Table