President Trump has issued a proclamation linking the ultimate monetary fee imposed on imports of automobile parts to the imports’ use in the assembly of automobiles within the United States. Modifications to the system imposed in Proclamation 10908 have been made to reduce duties assessed on automobile parts accounting for 15% of the value of an automobile assembled in the U.S. for 1 year, and equivalent to 10% of that value for an additional year. The breakdown is as follows:
For automobiles assembled in the United States, automobile manufacturers shall be eligible to receive an import adjustment offset amount applicable to section 232 duties on automobile parts based on the following schedule:
The automobile manufacturer may apply for an import adjustment offset amount equal to 3.75 percent of the aggregate Manufacturer’s Suggested Retail Price (MSRP) value of all automobiles assembled in the United States from April 3, 2025, through April 30, 2026.
The automobile manufacturer may apply for an import adjustment offset amount equal to 2.5 percent of the aggregate MSRP value of all automobiles assembled in the United States from May 1, 2026, through April 30, 2027.
The 3.75% rate reflects the total duty that would be owed when a 25 percent duty is applied to parts accounting for 15 percent of an automobile’s MSRP value. The 2.5% rate reflects the total duty that would be owed when a 25 percent duty is applied to parts accounting for 10 percent of an automobile’s MSRP value.
Only automobiles that undergo final assembly in the United States are eligible to be included in this calculation. Import adjustment offset amounts can be utilized solely by importers of record authorized by the manufacturer, and only to offset that manufacturer’s automobile parts tariff liability under Proclamation 10908. Any offset amount exceeding the applicable tariff liability is ineligible for use beyond that limit. Manufacturers may designate which importers of record, including supply chain partners involved in U.S. automobile assembly, can use the offset.
Manufacturers seeking an import adjustment offset amount will be required to submit to the Secretary documentation certifying the following:
the projected number of automobiles the manufacturer will assemble in the United States, as well as a list of all plant locations where the projected automobiles will undergo final production;
the manufacturer’s projected cost of tariffs due to imported automobile parts subject to Proclamation 10908, broken down by tariff costs the manufacturer will incur directly and tariff costs the manufacturer will incur from its suppliers;
details of the total import adjustment offset amount requested within the schedule determined by the Secretary in accordance with this proclamation;
identification of the importer(s) of record, including importer of record numbers, eligible to use that manufacturer’s import adjustment offset amount, as well as the amount of the manufacturer’s offset amount allotted to each importer of record; and
a certification, signed by a senior officer of the manufacturer, attesting under penalty of perjury that the information submitted is true, complete, and accurate to the best of their knowledge, and that reasonable due diligence was used to verify the accuracy of the assertions and facts contained in its submissions.
The Secretary will establish a process that manufacturers can utilize to provide the above by May 29th, 2025. Upon verification of the completeness and accuracy of a manufacturer’s submission and the manufacturer’s eligibility, the Secretary shall approve the application and notify U.S. CBP with the information necessary for CBP to administer and implement the manufacturer’s import adjustment offset amount. This includes the eligible importer's importer of record number(s) and the approved import adjustment offset amount. CBP will confer the approved offset amount to the approved importer(s) of record using processes and mechanisms consistent with CBP’s operational framework and tariff administration procedures, including offset against current tariff obligations due at the time of entry, or other lawful methods. CBP will begin providing approved importers with an import adjustment offset amount as soon as practicable and may request information from importers of record as necessary to implement a particular manufacturer’s import adjustment offset amount. Should an importer claim and receive any import adjustment offset amount from CBP in excess of the amount approved by the Secretary, CBP may assess monetary penalties in the maximum amount permitted by law.
The Secretary, in consultation with the Secretary of the Treasury and the Commissioner of CBP, shall issue such regulations, guidance, and procedures as necessary to carry out the provisions of this proclamation and Proclamation 10908, and may establish standards for determining United States content and for validating manufacturer certifications. The Secretary, in consultation with the United States International Trade Commission and CBP, shall determine whether modifications to the HTSUS are necessary to effectuate this proclamation and may make such modifications through notice in the Federal Register if needed.
To view the full proclamation and accompanying fact sheet, visit:
Proclamation: Amendments to Adjusting Imports of Automobiles and Automobile Parts into the United States
Fact Sheet: President Donald J. Trump Incentivizes Domestic Automobile Production