Originally issued, the Proclamation omitted Annex I, which was meant to define the car parts that would be impacted by the revised tariff. Proclamation 10908, together with Annex I, was formally issued in the Federal Register on April 3, 2025.
US policy proclamation 10908 includes the following extra duties:
For cars classified under the Harmonized Tariff Schedule (HTS) subheadings listed in paragraph A.a of Annex I[1] imported into the United States for use beginning at 12:01 a.m. Eastern Daylight Time on April 3, 2025:
Automobiles that do not qualify for preferential duty treatment under the United States-Mexico-Canada Agreement (USMCA) will incur a 25% tariff on their total customs value. Automobiles qualifying for USMCA preferential tariff treatment will pay a 25% duty on the value of all non-U.S. content.
Excluded from this tariff will be vehicles that don’t fit the classes of “sedans, SUVs, crossover utility vehicles, minivans, cargo vans, or light trucks” as well as those at least 25 years old at the time of importation.
Regarding automobile parts imported into the United States for consumption on or after 12:01 a.m. Eastern Daylight Time on May 3, 2025, categorized under the HTS subheadings in paragraph B.a of Annex I[2]:
US policy except for the 25% tax on the full customs value of these items. Tariffs will exempt components not meant for “sedans, sport utility vehicles, crossover utility vehicles, minivans, cargo vans, or light trucks.”
Parts that qualify for USMCA preferential duty treatment[3] are presently excluded from the tariff; however, once the Secretary of Commerce establishes guidelines for tariff allocation, they will be taxed at 25%.
Proclamation 10908, like the recent announcements on steel and aluminium levies, orders the Secretary of Commerce to create, within 90 days, a method for applying the 25% tariff to other automobile parts.