Adjusting Imports of Automobiles and Automobile Parts Into the United States

On March 26, 2025, President Donald Trump issued Proclamation 10908, imposing a 25% tariff on imported automobiles and certain automobile parts to protect U.S. national security and bolster the domestic auto industry. This action, based on a 2019 Commerce Department report, aims to address vulnerabilities in supply chains and the decline in domestic manufacturing, exacerbated by the COVID-19 pandemic. The proclamation could lead to higher vehicle prices for consumers, potential trade tensions with exporting countries, and legal challenges regarding its alignment with international trade agreements.