Tariff Impact: Automotive Industry
US tariff impact on the automotive industry — vehicles, auto parts, engines, and EV components. Section 232, 301, and 122 overlays analyzed.
2,000
HTS codes
135%
Max total duty
2,000
Sec 301 affected
223
Sec 232 affected
Trade Context
The US imported over $420 billion in automotive goods in 2024. Mexico, Canada, Japan, South Korea, and Germany are the top sources. China's share is growing rapidly in EV components and batteries.
Tariff Impact Summary
The automotive sector faces some of the highest cumulative tariff rates in the HTS — up to 100% on Chinese EVs. Section 232 steel/aluminum tariffs cascade through parts supply chains, while Section 301 hits Chinese components across all four lists. The Section 122 surcharge adds another 10% on top.
Duty Rates by HTS Chapter
| Chapter | Codes | Avg Sec 301 | Avg Sec 232 | Sec 122 | Max Total |
|---|---|---|---|---|---|
| Ch 40: Rubber & Articles Thereof | 142 | 25% | 1.2% | 10% | 60% |
| Ch 70: Glass & Glassware | 198 | 25% | 0.3% | 10% | 60% |
| Ch 84: Industrial Machinery | 824 | 25% | 1% | 10% | 60% |
| Ch 85: Electronics & Electrical Equipment | 624 | 25% | 2.1% | 10% | 60% |
| Ch 87: Motor Vehicles & Auto Parts | 212 | 25.4% | 14.6% | 10% | 135% |
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Frequently Asked Questions
What tariffs apply to cars imported from China?
Chinese vehicles face a base MFN rate of 2.5% for passenger cars, plus 25% Section 301, plus 10% Section 122 surcharge. Electric vehicles from China face an additional 100% tariff under the 2024 strategic tariff increase, on top of the base stack.
Are auto parts from Mexico tariff-free?
Auto parts qualifying under USMCA rules of origin enter duty-free. However, parts that don't meet the 75% regional value content threshold are subject to MFN rates plus applicable surcharges. The Section 122 surcharge applies to all non-exempt imports.
How do Section 232 tariffs affect the auto industry?
Section 232 imposes 50% tariffs on steel and 50% on aluminum. Since vehicles and parts contain significant steel and aluminum, these tariffs increase input costs throughout the supply chain — even for domestically assembled vehicles.
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