March 27, 2025 - This week, President Trump announced a new tariff plan for the automotive industry, imposing a 25% tariff on imported automobiles and key automobile parts. The tariffs will apply to passenger vehicles, light trucks, and essential components such as engines, transmissions, powertrain parts, and electrical components. These tariffs will take effect on April 2, 2025.
The president is exercising his authority under Section 232 of the Trade Expansion Act of 1962 to adjust imports that threaten to impair national security. The tariffs announced by President Trump are intended to be permanent, with no plan to remove the import taxes.
Automobiles and parts compliant with the United States-Mexico-Canada Agreement (USMCA) will remain tariff-free until a process is established to apply tariffs to their non-U.S. content. For USMCA-compliant vehicles and parts, the tariffs will only apply to the value of their non-U.S. content.
Citrin Cooperman’s Dealership Industry Practice will continue to provide information on the latest developments regarding auto tariffs and their potential impact on dealerships. We recently produced two articles that highlight how these increased tariffs can potentially impact your business, as well as how to pivot your business to these changes. Click on the links to read more.
- 3 Ways the Tariff Hike Could Hurt Auto Dealerships
- How Dealerships Can Brace for Incoming Tariff Shocks
Contact your Citrin Cooperman representative today for guidance on how to prepare your dealership for these changes.