Breadcrumbs
Ahead of the Curve: Butzel Legal Corner
By Jennifer M. Smith-Veluz, International Trade Attorney, Butzel Long, P.C.
This year has seen a flurry of new tariff developments affecting the U.S. auto industry, including:
- “Reciprocal” tariffs on nearly all imports from all countries ranging from 10% to 40+%;
- 25% tariffs on autos and auto parts;
- 50% tariffs on aluminum, steel, and semifinished copper products and derivatives;
- Elimination of duty-free de minimis treatment for shipments valued at $800 or less;
- A 50% tariff on most imports from Brazil;
- 25% and 35% tariffs on imports from Mexico and Canada that do not comply with the U.S.-Mexico-Canada Agreement (USMCA);
- Various tariffs on most imports from China, currently totaling 37.5% to 55%; and
- A trade deal with the UK, which includes a 10% tariff on parts of passenger vehicles and light trucks and up to 100,000 passenger vehicles annually and 25% tariffs on aluminum and steel and derivatives.
More tariffs may be on the way. Fees on foreign-built vehicle carrier vessels and Chinese-owned/operated/built vessels take effect October 14. There are quarterly processes for requests to include new products in the tariffs on autos, auto parts, and aluminum, copper, and steel derivatives. And ongoing government investigations could result in additional tariffs on trucks, processed critical minerals, semiconductors, and several other products.
Companies in the auto industry can mitigate tariff risks by:
- Tracking the latest developments.
- Checking their supply chains for tariff vulnerabilities. Companies should carefully determine whether the products they purchase and import are subject to current tariffs or could be included later, and strategize accordingly.
- Taking reasonable care to ensure customs declarations are correct. Importers must report the correct classification, valuation, and country of origin, or else they may face penalties. For USMCA claims, an importer should confirm that the special USMCA rules of origin are satisfied and have the USMCA Certificate of Origin in its possession.
- Monitoring quarterly tariff inclusion requests and submitting responsive or rebuttal comments within 14 days. Comments should address whether a tariff on the product would serve U.S. national security interests.
- Considering how to make tariffs work for them. Of course, most businesses are not clamoring for new tariffs now. But an inclusion request might make sense if a U.S. manufacturer or importer sees a competitor benefiting by importing products that are not subject to additional tariffs. U.S. manufacturers who are harmed by imports can also seek antidumping and countervailing duties.
- Preserving rights to refunds. Lower courts have found the reciprocal tariffs and tariffs on Canada, China, and Mexico imposed under the International Economic Emergency Powers Act (IEEPA) to be unlawful. Those cases are on appeal and will likely go to the Supreme Court. Companies should prepare for a potential need to seek refunds on those tariffs through customs protests or a claims process.
- Asking appropriate questions. Companies should seek assistance from a trusted trade professional if they have specific questions about the tariffs and their impacts.
Disclaimer: This information is current as of July 31, 2025. This article is for informational purposes only and does not constitute legal advice.