Trump Administration Announces Changes to Original Tariff Plan for Automobiles and Begins Collecting Duties for Products Imported Under the De Minimis Exception

May 01, 2025

The Trump Administration has adjusted its tariff assessments on automobiles. Starting May 3, 2025, all automobiles and automobile parts imported into the United States will be subject to a 25% tariff. However, automobile companies can receive credits for a portion of the tariffs on auto parts, roughly equal to 15% of the value of the vehicle assembled in the U.S.

Additionally, the Trump Administration has announced it will not stack tariffs on automobiles, which would have forced automakers to pay duties on whole cars and on the materials included in them. This means that automakers will not be assessed tariffs on aluminum, steel, and other materials needed to build their cars for at least two years.

Also, starting on May 2, 2025, the Trump administration will begin collecting duties on products imported into the U.S. valued under $800 at either a duty rate of $100 per item or 120% of the item’s value of the individual package. These products were previously exempt from tariffs and import duties under the de minimis exemption.

Please keep in mind that this is a very fluid situation, and we will continue to issue updates as soon as additional information becomes available.

In the meantime, if you have any questions about this or another tariff related issue, please contact our OEC Customs Brokerage Advisors here, or feel free to contact your designated OEC Customs Brokerage Advisor directly.

Thank you!