On April 2, 2025, the Annex to the Presidential Proclamation imposing 25% tariffs under Section 232 of the Trade Expansion Act of 1962 on imports of automobiles and certain automobile parts was released along with U.S. Customs and Border Protection (US-CBP) guidance regarding the fully assembled automobile provisions. As previously reported, see Thompson Hine Update of March 27, 2025, the tariffs will apply to final assembled automobiles, entered for consumption or withdrawn from warehouse for consumption, on or after April 3, 2025, and for automobile parts entering the United States on or after May 3, 2025. Beyond the operational guidance, the Annex provides three new elements to the Presidential Proclamation: (1) it expands the list of automobiles and automobile parts that fall within the scope of the tariffs; (2) it provides a “blanket” exemption until a process is in place to apply the tariff to the non-US content only of USMCA-originating automobile parts ; and, (3) accompanied by the launch of the reciprocal tariff plan, confirms that the Section 232 automobile and automobile parts tariffs are “decoupled” from the reciprocal tariffs (i.e., the reciprocal and automobile and automobile parts tariffs are not “stacked”). 

The 25% tariff on automobiles will cover the following Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 8703.22.01, 8703.23.01, 8703.24.01, 8703.31.01, 8703.32.01, 8703.33.01, 8703.40.00, 8703.50.00, 8703.60.00, 8703.70.00, 8703.80.00, 8703.90.01, 8704.21.01, 8704.31.01, 8704.41.00, 8704.51.00, and 8704.60.00. Entries subject to these Section 232 tariffs will be filed under new Chapter 99 subheading 9903.94.01 for all entries of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks from all countries.

Another new HTSUS subheading – 9903.94.02 – has been established for all entries of automobiles covered in the above HTSUS codes but are not passenger vehicles and light trucks, or the “U.S. content” of passenger cars and light trucks exempt from tariffs eligible for preferential treatment under the USMCA, upon approval by the Secretary of Commerce and will be subject to 0% tariffs. New HTSUS subheading 9903.94.03 will apply 25% tariffs to the non-U.S. content for those USMCA-certified passenger vehicles and light trucks. A new duty-free HTSUS subheading – 9903.94.04 – is to be used for exempt passenger vehicles and light trucks manufactured “at least 25 years prior to the year of the date of entry from the tariffs.”

Regarding automobile parts, the Annex covers multiple HTSUS subheadings under Chapters 40, 70, 73, 83, 84, 85, 87, 90 and 94. Entries subject to these Section 232 tariffs will be filed under new Chapter 99 subheading 9903.94.05. HTSUS subheading 9903.94.06 applies to all entries of articles classifiable under these HTSUS subheadings that: (i) are eligible for special tariff treatment under the USMCA, other than automobile knock-down kits or parts compilations; or (ii) are not parts of passenger vehicles and light trucks. In contrast to USMCA-certified passenger vehicles and light trucks that remain in the scope of the tariffs for non-U.S. content, USMCA-certified automobile parts receive a full exemption from the scope of the tariffs. USMCA-certified automobile parts listed in the relevant annex receive an effective 0% special duty under Section 232; however, any other applicable duties may apply.

Automobile parts HTSUS subheadings not included in the original Section 232 report but listed on the Annex include, but are not limited to: 4009.12.0020, 4009.22.0020, 4009.32.0020, 4009.42.0020, 4011.10.10, 4011.10.50, 4011.20.10, 4012.19.40, 4012.19.80, 4012.20.60, 4013.10.0010, 4013.10.0020, 4016.99.6010, 7007.21.51, 7009.10.00, 7320.10, 7320.20.10, 8301.20.00, 8302.10.30, 8471, 8482.10.10, 8482.10.5044, 8482.10.5048, 8482.20.0020, 8482.20.0030, 8482.20.0040, 8482.20.0061, 8482.20.0070, 8482.20.0081, 8482.40.00, 8482.50.00, 8483.10.1030, 8483.10.30, 8501.32, 8501.33, 8501.34, 8501.40, 8501.5112, 8501.52, 8507.10, 8507.90.80, 8511.10.0000, 8511.80.60, 8511.90.6020, 8511.90.6040, 8512.90.60, 8512.90.70, 8519.81.20, 8537.10, 8537.20, 8539.10.0010, 8539.10.0050, 8706.00.03, 8706.00.05, 8706.00.15, 8706.00.25, 8707.10.0020, 8707.10.0040, 8707.90.5020, 8707.90.5040, 8707.90.5060, 8707.90.5080, 8708.10.30, 8708.10.60, 8708.21.00, 8708.22, 8708.29, 8708.30, 8708.40.11, 8708.40.70, 8708.40.75, 8708.50, 8708.70, 8708.80, 8708.91, 8708.93.60, 8708.93.75, 8708.94, 8708.95, 8708.99.53, 8708.99.55, 8708.99.58, 8708.99.68, 8716.90.50, 9015.10, and 9401.20.00.

These tariffs will continue in effect, “unless such actions are expressly reduced, modified, or terminated.” These ad valorem tariffs are in addition to any other duties, fees, exactions, and charges applicable to such imported automobiles and certain automobile parts articles.