A 25 percent tariff on imported automobile parts took effect on May 3, marking a significant step in President Donald Trump’s effort to reduce U.S. dependence on foreign supply chains and boost domestic manufacturing jobs.
The new duties—authorized under a March 26 proclamation—apply to key components used in passenger vehicles and light trucks, including engines, transmissions, and electrical systems.
The tariffs affect imports from all countries, although parts that meet U.S.-Mexico-Canada Agreement (USMCA) requirements are exempt, in a bid to preserve the tightly interwoven North American auto supply chain.
According to updated guidance issued by U.S. Customs and Border Protection (CBP) on Thursday, USMCA-compliant parts will not face the new duties—so long as they are not part of knock-down kits, or bulk component packages intended for assembly….