14 hours ago
7
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
Tariffs on imported parts will have a broad impact because all vehicles use components made abroad.
May 3, 2025, 12:00 a.m. ET
The United States imposed 25 percent tariffs on imported auto parts on Saturday that could sharply raise prices for new and used vehicles as well as for repairs and insurance.
The latest tariffs, which President Trump ordered in March as part of his plan to promote domestic manufacturing, come after the 25 percent levies on imported cars that took effect in early April.
This second round of duties on imported parts will have a broader impact because even cars made in the United States often have engines, transmissions, batteries or other components produced in other countries.
The administration said on Tuesday that the tariffs were intended “to protect national security by incentivizing domestic automobile production and reducing American reliance on imports of foreign automobiles and their parts.”
The tariffs on parts will not apply to components from Canada or Mexico as long as those goods meet the requirements of a North American trade agreement negotiated during Mr. Trump’s first term. Among other things, that deal requires that a minimum percentage of the content of auto parts come from within North America.
The administration also said that imported auto parts would not be subjected to other levies, like the ones on aluminum and steel. And companies that made cars in the United States would be exempted for two years from having to pay a portion of the tariffs for imported parts.
