The Trump administration’s 25% tariff on automotive imports will touch $328 billion of imports across vehicles and parts as well as including non-compliant United States-Mexico-Canada Agreement shipments, according to an analysis brief from S&P Global Market Intelligence.
While President Trump announced a delay for most of the reciprocal tariffs on April 9, automotive tariffs are not among those on pause. These include the 25% tariff on foreign-made automobiles that went into effect on April 3 and the 25% tariff on foreign-made auto parts that goes into effect on May 3.
S&P released updates on tariff effects based on its latest market insights and data and reported that USMCA partners Canada and Mexico are significantly exposed to the auto tariffs. In 2024, 61.5% and 51.7% of their respective auto parts exports went to the U.S. Canada has responded by imposing a 25% duty on non-USMCA compliant imports and U.S. content of USMCA-compliant vehicle imports from the US.
On April 10, a White House official clarified the total tariff on China is 145%. Auto parts that are manufactured in China and used in many American automobiles face significant price increases for automakers and consumers, according to an NBC report. The S&P brief said that China’s use of legal tools is likely to expand in response to the escalation, but will aim to avoid irreversible damage to commercial relations with the U.S.
After the reciprocal tariffs delay, the market remains volatile and uncertain. S&P updated its U.S. forecasts on April 8 and will provide an updated global forecast on April 15. It plans to revise growth forecasts for many other countries and regions down, consistent with its U.S. outlook.
