Trump's auto tariffs to cover more than US$460bil of US vehicle, parts imports

WASHINGTON: US President Donald Trump's 25% auto tariffs will cover more than US$460 billion (RM2tril) worth of imports of vehicles and auto parts imports annually, according to a Reuters analysis of tariff codes included in a federal register notice on Wednesday.

The update of Trump's auto tariff proclamation from last week included nearly 150 auto parts categories that will face tariffs starting on May 3, a month after Thursday's midnight activation of 25% tariffs on vehicle imports.

The list includes tariff codes for engines, transmissions, lithium-ion batteries and other major components, along with less expensive parts including tyres, shock absorbers, spark plug wires and brake hoses.

But the list also includes automotive computers covered under the four-digit tariff code that includes all computer products, including laptop and desktop computers and disk drives.

The category had imports of US$138.5 billion (RM618bil) in 2024, according to US Census Bureau data.

The total US vehicle and parts imports excluding this category was US$459.6 billion.

The value of automotive computers, which are essential components of every modern car and truck, including electric vehicles was not immediately clear because there is no separate tariff code for automotive computers.

The parts list, along with the May 3 timing for tariffs on those imports, was disclosed just before Trump announced a baseline 10% tariff for all US imports, with many countries slapped with higher reciprocal duties meant to counteract non-tariff trade barriers.

Senior Trump administration officials said autos and auto parts subject to the Section 232 national security tariffs would not also be charged the separate baseline or reciprocal tariffs.

In other words, the auto tariffs do not stack on top of the new reciprocal tariffs, which start on April 5.

More parts could be added to the tariff list, as the White House directed the Commerce Department to establish a process within 90 days for domestic producers to request that other parts imports be targeted.

The notice said that for vehicles qualifying under the US-Mexico-Canada Agreement's rules of origin, importers can pay the 25% duty on only the non-US content of the order.