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ARTICLE · 03 APRIL 2025

Trump Tariffs: Executive Order Imposing 'Automobile' Tariffs Slams North American Automotive Integration Into Reverse

Osler, Hoskin & Harcourt LLP
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On March 26, 2025, U.S. President Trump issued an executive order (the EO) imposing a 25% ad valorem tariff on imported motor vehicles (which the EO collectively calls "automobiles") effective April 3, 2025, and certain automobile parts effective no later than May 3, 2025.

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On March 26, 2025, U.S. President Trump issued an executive order (the EO) imposing a 25% ad valorem tariff on imported motor vehicles (which the EO collectively calls "automobiles") effective April 3, 2025, and certain automobile parts effective no later than May 3, 2025. The tariffs are being imposed pursuant to section 232 of theTrade Expansion Act of 1962.

The EO precedes what is expected to be another significant escalation in the Trump administration's use of tariffs: the anticipated announcement on April 2, 2025, of "reciprocal" tariffs on various countries, possibly including Canada.

What products are covered by the automotive tariffs?

The tariffs will apply to imports of automobiles or automobile parts. The EO does not specify which automobiles and parts are subject to the tariffs; this will be set out in annexes, when the EO is published in the Federal Register. Based on the wording of the EO, the tariffs likely will apply to

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