Tariff Talk

Automobiles have been added to the list of new tariffs scheduled for implementation on April 3. Automobile parts will follow by May 3, pending further details in the annex and notice in the Federal Register. This follows President Trump’s proclamation authorizing an additional 25% tariff on automobiles and parts, with specific information on impacted countries and HTS codes to be provided in the coming days.

The proclamation specifically calls out Japan, Korea, the European Union, and USMCA members Mexico and Canada. It covers passenger vehicles, light trucks, and parts, including engines, engine parts, transmissions, powertrain parts, and electrical components. More details will be provided in the annex once filed. Consistent with other Section 232 language, the President has granted the Secretary of Commerce the authority to identify additional parts that were not initially included, at the request of a domestic automobile or parts producer.

Regarding USMCA, the proclamation includes several clauses that address potential fraud and heightened scrutiny of declarations seeking preferential tariff treatment. If an importer is found to have overstated the U.S. content, the full 25% tariff will be assessed, with retroactive reviews possible. The proclamation also mandates a broader review of USMCA declarations by the same importer. Enforcement language is found throughout the proclamation, signaling a strong emphasis on tariff compliance.

OCEANAIR is closely monitoring updates from the White House and Federal Register and will provide details on all scheduled April tariffs as soon as they are released.