Summary
- President Trump announced plans to impose a 25% tariff on foreign automobiles.
- A 25% tariff will also be applied to key auto parts, and the scope may be expanded depending on the situation.
- Auto parts complying with USMCA will remain duty-free, with tariffs imposed only on non-U.S. elements.
U.S. President Donald Trump announced on the 26th (local time) that a 25% tariff will be imposed on foreign automobiles, and the White House stated that key auto parts, including engines, will also be subject to this tariff.
In a fact sheet related to the automobile tariffs effective April 2, the White House reported that "a 25% tariff will be applied not only to imported passenger cars (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks but also to key auto parts such as engines, transmissions, powertrain components, and electrical parts."
The White House added that a process to expand the scope of parts subject to tariffs will proceed if necessary.
The White House also announced that under the United States-Mexico-Canada Agreement (USMCA), a system will be implemented to impose a 25% tariff only on the non-U.S. elements of imported cars entering the U.S.
Additionally, the White House stated that the duty-free status for auto parts complying with USMCA will be maintained until the U.S. Secretary of Commerce establishes a process, in consultation with Customs and Border Protection (CBP), to impose tariffs on the non-U.S. elements in the products.
Reporter Geun-A Park twilight1093@wowtv.co.kr
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
