The Department of Commerce Announces New Auto Tariff Offset Process

FOR IMMEDIATE RELEASE
Thursday, June 12, 2025
Contact: Office of Public Affairs
Email: publicaffairs@trade.gov
Phone: 202-482-3809

WASHINGTON, D.C.— The U.S. Department of Commerce today released new procedures for U.S. automobile manufacturers to apply for offsets to the Section 232 tariffs applied on imported automobile parts based on the volume and value of the manufacturers’ automobile production in the United States.  This program will strengthen U.S. auto assembly capabilities and reduce American reliance on foreign auto production.  

Pursuant to President Donald J. Trump’s proclamation on March 26, 2025, 25% tariffs on imports of automobile parts went into effect on May 3, 2025. The President’s proclamation on April 29, 2025 further directed the Secretary of Commerce to establish a process by which auto manufacturers with production in the United States may apply for an import adjustment offset amount to temporarily reduce Section 232 tariffs on imported automobile parts in order to support final automobile production in the United States. 

As a result, a notice published in the Federal Register establishes the procedures for submission and review of applications for import adjustment offset amounts calculated as a percentage of the Manufacturer’s Suggested Retail Price (MSRP) for eligible vehicles assembled in the United States during a two-year period. Import adjustment offset amounts will be calculated as follows: 

•    3.75% of aggregate MSRP for eligible autos assembled between April 3, 2025, and April 30, 2026
•    2.5% of aggregate MSRP for eligible autos assembled between May 1, 2026, and April 30, 2027

Documentation requirements for review include (1) final production forecast by make, model and plant location, (2) aggregate MSRP value, (3) projected cost of tariffs for imported automobile parts, (4) total import adjustment offset amount calculation, (5) information on the importers of record, and (6) certification of accuracy. 

The Department of Commerce will review each submission for completeness and monitor compliance. Approved import adjustment offset amounts are valid until fully used, provided they were granted based on qualifying autos assembled in the United States between April 3, 2025 and April 30, 2027. 

Further information regarding the President’s automotive tariff amendment proclamation may be found here. 

Further information regarding the Department of Commerce’s procedures for import adjustment offset amounts for Section 232 automotive tariffs may be found here.

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About the International Trade Administration
The International Trade Administration (ITA) at the U.S. Department of Commerce is the premier U.S. Government resource for American companies competing in the global marketplace. Operating in more than 100 U.S. locations and 80 markets worldwide, ITA promotes trade and investment, assists U.S. businesses and workers to export and expand globally, and ensures fair trade and compliance by enforcing U.S. trade laws and agreements. For more information on ITA, visit www.trade.gov.