The U.S. government announced that it will not impose a 25% tariff on automotive parts subject to the United States-Mexico-Canada Agreement (USMCA), effective from the 3rd (local time).
On the 1st, the U.S. Customs and Border Protection (CBP) announced that automotive parts eligible for special tariff treatment under the USMCA will not incur additional tariffs starting from the 3rd.
Earlier, the Trump administration stated on March 26 that when announcing tariffs on automobiles and automotive parts, for vehicles benefiting from tariff rates under the USMCA, tariffs will only be calculated on non-U.S. parts after determining the origin of the parts.
It was noted that until the government establishes a method to apply tariffs only to non-U.S. parts, a 25% tariff will not be imposed on automotive parts (excluding semi-finished products) subject to the USMCA.
This CBP announcement provides specific procedures regarding the earlier information.
The Wall Street Journal (WSJ) reported, "There has been confusion among corporations about how this information will be implemented, but the CBP announcement confirmed that automotive parts from Canada and Mexico complying with the USMCA will not incur tariffs."