Automotive Tariffs Rise to 15.3%: What Vehicle Importers Must Do Now

The automotive sector faces an effective import tariff rate of 15.3% as of February 2026, a dramatic increase from the 2.5% MFN rate that had been the baseline for decades. The increase stems from the 2.5% Section 232 automotive tariff imposed in 2025, the 10% Section 122 temporary surcharge effective February 24, 2026, and various component-specific duties. For vehicles imported from countries without free trade agreements — including the EU, Japan, and South Korea (whose FTA automotive provisions have been renegotiated) — the full rate applies.

The USMCA provides significant relief for qualifying vehicles, but the rules of origin are among the most complex in any trade agreement. To qualify for duty-free treatment, a vehicle must meet a 75% regional value content threshold, with specific requirements for core parts, principal parts, and complementary parts. Steel and aluminum used in the vehicle must be melted and poured in North America. The labor value content must meet minimum thresholds. Failure to meet any single requirement results in the full 15.3% duty applying to the entire vehicle.

For parts suppliers, the tariff landscape is even more fragmented. Automotive parts are classified across dozens of HTS chapters — from Chapter 40 (rubber components) to Chapter 73 (steel parts) to Chapter 85 (electrical systems) to Chapter 87 (vehicle-specific parts). Each classification carries different duty rates, and the Section 232 and Section 122 surcharges apply differently depending on the material composition and country of origin. A single vehicle contains thousands of parts from dozens of countries, making comprehensive tariff management a significant operational challenge.

Immediate compliance steps for automotive importers include: conducting a full audit of HS classifications for all imported vehicles and parts, verifying USMCA qualification for North American-sourced vehicles, updating landed-cost models to reflect the Section 122 surcharge, and reviewing supplier declarations of origin for accuracy. Companies that rely on customs brokers for classification should verify that broker systems have been updated to reflect the 2026 tariff schedule changes.

The long-term outlook for automotive tariffs remains uncertain. The Section 122 surcharge is temporary (150 days), but the Section 232 automotive tariffs have no expiration date. Industry groups including the Alliance for Automotive Innovation have filed legal challenges to the Section 232 auto tariffs, but these cases are not expected to reach resolution before 2027. Importers should plan for sustained elevated duties while building flexibility into their supply chain strategies.