US raises tariff wall on automobiles and components

The Trump Administration in the United States (US) has announced a 25% tariff on imports of automobiles and some components to protect its industry, supply chains and national security.

The new tariffs will apply from April 3, 2025, on imports of passenger vehicles (PVs), light trucks and a date to be announced but not later than May 3, 2025 on components such as engines, transmissions, powertrain parts and electricals.

However, with US accounting for a minuscule share of OEM exports and about 3.5% of Auto comp exports, impact will be minimal.