Briefly, the revised tariff scheme provides for an offset to a portion of tariffs for automobile parts used in U.S.-assembled vehicles which is equal to 3.75% of the Manufacturer’s Suggested Retail Price (MSRP) of a manufacturer’s U.S. production for April 3, 2025 to April 30, 2026 and 2.5% of U.S. production for May 1, 2026 to April 30, 2027.

According to the Executive Order, these percentages reflect the duty that would be owed when a 25% duty is applied to 15% of the value of a U.S.-assembled automobile in the first year and to 10% of the value of a U.S.-assembled automobile in the second year.

Only automobiles that undergo final assembly in the United States are eligible for this offset, and all other automobile imports will still be subject to the 25% tariff.

Read the Proclamation here. We will provide updates as more information becomes available.