US Tariff on Auto Parts Goes Into Effect

The new duties target key vehicle components but include exemptions for USMCA-compliant parts to preserve North American supply chains.

New Mazda cars are driven from an auto processing terminal on a car hauler at the Port of Los Angeles in Wilmington, Calif., on April 3, 2025. Mario Tama/Getty Images

A 25 percent tariff on imported automobile parts took effect on May 3, 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.