Trump’s Auto Tariff Relief Shields USMCA Auto Parts From 25% Tax

President Donald Trump’s revised auto tariff plan continues — at least for now — an exemption for parts that comply with the free trade agreement spanning North America, a concession desperately sought by industry.

A White House official confirmed that Trump’s move this week to ease tariffs affecting the industry spares components that qualify for preferential treatment under the US-Mexico-Canada trade pact, known as USMCA. Previously, Trump had ordered that the non-US value of those parts would eventually be subject to a 25% duty — once the government established a process to apply the tax.

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