- Announcement of Tariffs: On March 26, 2025, President Trump announced a 25% additional tariff on imported automobiles and automobile parts, aimed at protecting U.S. national security, with tariffs on automobiles effective April 3, 2025, and on parts by May 3, 2025.
- Details and Compliance Measures: The Federal Register will provide more information on the specific products affected and the process for domestic producers to request changes; Customs and Border Protection (CBP) will enforce scrutiny on U.S. content claims, and noncompliance could result in retroactive tariffs on the full value of the imported goods.
- Business Implications and Actions: Importing companies should assess the impact of these tariffs, explore mitigation strategies such as adjusting U.S. content, review contracts for duty liability, and develop compliance processes to navigate increased customs scrutiny and potential adjustments in transfer pricing.
Source EY
