U.S. President Donald Trump’s updated 25% auto tariffs, effective from May 3, are set to cover more than $460 billion worth of vehicle and auto parts imports annually. This includes nearly 150 new categories of auto parts, ranging from critical components like engines and transmissions to more affordable parts such as tires and brake hoses.
A Reuters analysis of the U.S. federal register notice revealed these changes, which follow a similar update to last week’s tariff proclamation.
The updated tariff codes will impact components essential to modern vehicles, including lithium-ion batteries and automotive computers, which are integral to both conventional and electric vehicles. While it is unclear how much of the $138.5 billion in imports of automotive computers contributed to the overall total, the category—encompassing all computer products like laptops and disk drives—represents a significant portion of the imports.
The new tariffs will not apply to vehicles and auto parts already subject to the Section 232 national security tariffs, and the Trump administration has clarified that the auto tariffs will not be stacked with new baseline or reciprocal duties, which are set to take effect on April 5. Senior administration officials confirmed that parts for vehicles that qualify under the U.S.-Mexico-Canada Agreement’s (USMCA) rules of origin will only be taxed on their non-U.S. content.
The updated tariff list, which could potentially expand, was disclosed just before the announcement of a broader 10% tariff on all U.S. imports. The White House has instructed the Commerce Department to establish a process within 90 days for domestic producers to request that additional parts be added to the tariff list.