
Tariffs on car parts entering the US come into force
created: May 3, 2025, 4:21 a.m. | updated: May 4, 2025, 4:26 p.m.
Tariffs on car parts entering the US come into force2 days ago Share Save Natalie Sherman BBC News Share SaveGetty ImagesA 25% import tax on engines, transmissions and other key car parts has come into force in the US, raising pressure on an industry finding its way through a thicket of policy changes.
The new tariff comes days after Donald Trump eased the measure in response to business worries, but did not eliminate it.
When Trump announced plans in March to hit cars and certain car parts with 25% tariffs, an announcement that came amid a bevy of other tariffs, it sent shockwaves through the industry, drawing warnings of higher prices and risks to production and sales.
As it stands currently, parts made in Mexico and Canada in compliance with that free trade agreement will be spared the duties.
The administration had also already said firms importing cars made in Canada and Mexico would not be charged tariffs on US-made content.
1 month, 2 weeks ago: BBC News