Adjusting Imports Of Automobiles And Automobile

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On February 17, 2019, the Secretary of Commerce reported to the President that imports of automobiles and certain automobile parts threaten U.S. national security.
The President agreed with the Secretary's findings in Proclamation 9888 and directed negotiations with the European Union, Japan, and other countries; no agreements were reached.
The Secretary reported that national security concerns regarding automotive imports have escalated, worsened by COVID-19, exposing vulnerabilities in supply chains.
The President determined that tariffs are necessary to adjust imports of automobiles and parts to protect national security.
A 25% tariff will be imposed on specified automobiles and parts starting April 3, 2025, unless modified or terminated.
Importers of automobiles qualifying for USMCA may document U.S. content to potentially reduce tariff liability for non-U.S. content.
The 25% tariff may be retroactively applied if non-U.S. content value is inaccurately reported.
The tariff does not apply to USMCA-eligible automobile parts until a process for tariff application on non-U.S. content is established.
Includes a provision for the Secretary to modify the Harmonized Tariff Schedule (HTSUS) for implementing tariffs.
The Secretary will have 90 days to establish processes for including additional automobile parts for tariffs based on national security threats.
All imports must adhere to “privileged foreign status” in trade zones, if applicable.
The Secretary will continue monitoring imports and consulting on national security issues, reporting to the President as necessary.
No drawback on duties imposed by this proclamation; regulations and guidance may be issued as needed.
Previous inconsistent proclamations and Executive Orders are superseded by this proclamation.