BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
1. On February 17, 2019, the Secretary of Commerce (Secretary) submitted to me a report regarding the impact of imports of passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks (collectively referred to as automobiles) as well as certain automobile parts (including engines, transmissions, powertrain components, and electrical components) on the national security of the United States, in accordance with section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (section 232). Based on the facts outlined in that investigation, the Secretary concluded and communicated his opinion that the imports of automobiles and certain automobile parts into the United States are occurring in such quantities and under circumstances that pose a threat to the national security of the United States.
2. In Proclamation 9888, issued on May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), I agreed with the Secretary’s assessment in the February 17, 2019, report that the importation of automobiles and certain automobile parts into the United States is conducted in such volumes and contexts as to threaten our national security. I instructed the United States Trade Representative (Trade Representative), in collaboration with other officials from the executive branch, to seek agreements aimed at addressing the national security threats posed by imported automobiles and specific automobile parts from the European Union, Japan, and any other countries deemed appropriate by the Trade Representative.
3. The Trade Representative’s negotiations did not result in any agreements envisaged by section 232.
4. I also directed the Secretary, in Proclamation 9888, to monitor the imports of automobiles and certain automobile parts and to report to me on any circumstances that might suggest the need for additional actions under section 232 concerning these imports.
5. The Secretary has informed me that national security concerns persist and have intensified since the February 17, 2019, report. The COVID-19 pandemic revealed critical weaknesses and bottlenecks within global supply chains, compromising our capability to uphold a resilient domestic industrial infrastructure. In recent years, American automotive manufacturers have faced numerous supply chain obstacles, including shortages of materials and parts, labor scarcity, and electrical component deficits. In contrast, foreign automotive sectors, fueled by unfair subsidies and aggressive industrial strategies, have expanded significantly. Currently, around half of the vehicles sold in the United States are produced domestically, a decline that endangers our industrial base and national security, while the U.S. share of global automobile production has shown no growth since the February 17, 2019, report. The number of jobs in the domestic automotive industry has also not improved since that report.
6. I have also been advised that agreements made prior to the issuance of Proclamation 9888, including revisions to the United States-Korea Free Trade Agreement and the United States-Mexico-Canada Agreement (USMCA), have not produced adequate positive results. The threat posed by imports of automobiles and certain automobile parts to national security remains and has escalated. Investments resulting from other efforts, such as recent legislation, have similarly failed to neutralize the national security risks associated with these imports.
7. Upon reviewing the updated information provided by the Secretary, among other considerations, I conclude that imports of automobiles and specific automobile parts continue to present a threat to national security and find it essential to impose tariffs, as detailed below, to regulate these imports so that they do not jeopardize national security.
8. To ensure that these tariffs on automobiles and certain automobile parts, as outlined in this proclamation, are not evaded and that the purpose of this action to protect U.S. national security from such imports is not compromised, I also find it necessary to establish processes to identify and impose tariffs on additional automobile parts, as described below.
9. Section 232 stipulates that, in such circumstances, the President may take any other actions deemed necessary to adjust the imports of the relevant items to prevent them from threatening national security.
10. Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), empowers the President to incorporate the essence of statutes affecting import treatment in the Harmonized Tariff Schedule of the United States (HTSUS), along with actions related to it, which may include the removal, modification, continuation, or imposition of any duties or other import restrictions.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States, including section 301 of title 3, United States Code; section 604 of the Trade Act of 1974, as amended; and section 232 of the Trade Expansion Act of 1962, as amended, do hereby proclaim as follows:
(1) Except as otherwise provided in this proclamation, all imports of articles noted in Annex I to this proclamation or in any future annex referenced in subsequent notices in the Federal Register shall be subject to a 25 percent tariff on goods entered for consumption or withdrawn from warehouse for consumption, effective 12:01 a.m. eastern daylight time on April 3, 2025, for automobiles, and on the date specified in the Federal Register for automobile parts, with a deadline of no later than May 3, 2025. This tariff will remain in effect unless explicitly reduced, modified, or terminated. The aforementioned ad valorem tariff is in addition to any other applicable duties, fees, or charges for imported automobiles and certain automobile parts articles.
(2) For automobiles qualifying for preferential tariff treatment under the USMCA, importers may submit documentation to the Secretary indicating the value of U.S. content in each model imported into the United States. “U.S. content” denotes the value of the automobile attributable to parts that are entirely sourced, produced, or significantly transformed in the United States. Following this, the Secretary may approve imports of such vehicles to apply the 25 percent ad valorem tariff described in clause (1) of this proclamation solely to the value of the non-U.S. content of the automobile. The non-U.S. content will be calculated by deducting the U.S. content value from the total automobile value.
(3) Should U.S. Customs and Border Protection (CBP) find that the declared value of non-U.S. content in an automobile, as per clause (2) of this proclamation, is inaccurate due to an inflated statement of U.S. content, the 25 percent tariff will apply to the total value of the automobile, irrespective of the actual U.S. content. Moreover, the 25 percent tariff will be applied retroactively (from April 3, 2025, back to when the overstatement occurred) and prospectively (from the date of the inaccurate statement until corrected, verified by CBP) to the total value of all vehicles of that model imported by the same entity. This clause does not impact any other applicable fees or penalties.
(4) The 25 percent ad valorem tariff referenced in clause (1) of this proclamation will not apply to automobile parts qualifying for preferential treatment under the USMCA until the Secretary, in consultation with CBP, establishes a method to apply the tariff exclusively to the value of the non-U.S. content of such parts and publishes a notice in the Federal Register.
(5) For clarity, clause (4) does not pertain to automobile knock-down kits or parts compilations. It applies only to individual automobile parts as defined in Annex I to this proclamation that meet its requirements.
(6) The Secretary, in consultation with the United States International Trade Commission and CBP, shall define the necessary modifications to the HTSUS to implement this proclamation and shall execute these modifications via notice in the Federal Register.
(7) Within 90 days from the date of this proclamation, the Secretary shall establish a process for the inclusion of further automobile parts articles under the tariffs outlined in clause (1). This process shall also allow for the inclusion of additional automobile parts at the request of a domestic automobile or automobile parts producer or industry association, provided the request demonstrates that imports of these additional articles have surged in a manner that threatens national security or otherwise contravenes the objectives specified in any proclamation stemming from the Secretary’s February 17, 2019, report or any further information submitted to the President under clause (3) of Proclamation 9888 or clause (9) of this proclamation. Upon receiving such a request, the Secretary, after consulting with the United States International Trade Commission and CBP, should issue a determination regarding the inclusion of these articles within 60 days. Any additional automobile parts articles deemed included within the scope of the tariffs as noted in clause (1) will be effective starting at 12:01 a.m. eastern daylight time the day following the publication of a notice in the Federal Register detailing the Secretary’s determination. This notice will be made as soon as feasible but no later than 14 days following the Secretary’s decision.
(8) Any automobile or automobile part, excluding those eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, that is subject to the duties enacted by this proclamation upon entry into a United States foreign trade zone on or after the effective date, in accordance with clause (1), must be classified as ‘privileged foreign status’ as per 19 CFR 146.41, and will be liable for any applicable ad valorem duty rates corresponding to its classification within the relevant HTSUS subheading upon consumption entry.
(9) The Secretary will persist in monitoring imported automobiles and automobile parts. The Secretary shall periodically evaluate the status of these imports in consultation with appropriate senior executive branch officials, to assess their impact on national security. The Secretary must inform the President of any circumstances that may suggest the need for further action under section 232 or if the increased duty rate in this proclamation may no longer be warranted.
(10) No drawback shall be permitted concerning the duties enacted under this proclamation.
(11) The Secretary is authorized to issue regulations and guidance in line with this proclamation, including those addressing operational necessities.
(12) CBP may undertake any necessary measures to enforce the tariffs instituted by this proclamation.
(13) Any provisions from previous proclamations or Executive Orders that conflict with the actions taken in this proclamation are hereby superseded to the extent of such conflict.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-sixth day of March, in the year of our Lord two thousand twenty-five, and of the Independence of the United States of America the two hundred and forty-ninth.
