On Wednesday, April 2, President Trump announced that starting at midnight on Wednesday (12:01 AM) Eastern Time, a 25% tariff would be imposed on all foreign-made cars to address issues affecting the United States’ industrial base and national security.
According to Reuters’ analysis of the tariff codes published in the U.S. Federal Register, the 25% auto tariff will annually cover imported cars and car parts worth over $460 billion.
The announcement of the auto tariffs on Wednesday updated nearly 150 categories of car parts, which will be subject to tariffs starting on May 3, a month after the initiation of the 25% tariff on imported cars early on Thursday.
The list of car parts subject to tariffs includes engines, transmissions, lithium-ion batteries, as well as other major component tariff codes, along with cheaper parts such as tires, shock absorbers, spark plug wires, and brake hoses.
Notably, the list also includes car computers, falling under the four-digit computer tariff code that encompasses all computer products, including laptops, desktops, and disk drives. According to the U.S. Census Bureau, the import value for this category in 2024 was $138.5 billion.
Excluding the computer category, the total import value of U.S. cars and parts amounts to $459.6 billion. However, car computers are essential components for every modern car and truck (including electric cars), and their exact value is currently unclear as car computers do not have a separate tariff code.
Trump also announced on Wednesday that a 10% base tariff would be imposed on all U.S. imported products, in addition to higher retaliatory tariffs imposed on several countries, aimed at offsetting non-tariff trade barriers.
Senior officials from the Trump administration stated that cars and car parts affected by the Section 232 national security tariffs would not be subjected to additional base tariffs or retaliatory tariffs. In other words, the auto tariffs will not be added on top of the new retaliatory tariffs starting on April 5.
The White House directed the Commerce Department to establish a process within 90 days for domestic manufacturers to request tariffs on other imported parts, with the possibility of adding more parts to the tariff list.
The notice stated that for vehicles complying with the United States-Mexico-Canada Agreement’s rules of origin, importers need only pay a 25% tariff on non-U.S. components in their orders.
The tariff policy announced on Wednesday will impose a 10% base tariff on all goods from all countries, except for goods conforming to the USMCA free trade agreement between Mexico, Canada, and the United States (non-compliant goods will continue to pay the 25% fentanyl tariff). Importers of goods from other countries will start paying the 10% base tariff from 12:01 AM Eastern Time on April 5.
Approximately 60 countries/regions will face retaliatory tariffs equivalent to half of their tariff rates on U.S. goods. According to a senior White House official, these retaliatory tariffs will take effect at 12:01 AM Eastern Time on April 9.