
U.S. Tariffs on Imports from Mexico
February-April 2025
U.S. Tariffs on Imports from Mexico, February-April 2025
Since February 1, 2025, U.S. President Donald J. Trump has issued multiple orders that have increased the ad valorem rate of duties on imports to the U.S. from Mexico. Some orders have focused on imports of Mexican goods specifically, while others have targeted imports of whole categories of products from many countries, including Mexico.
Orders focusing specifically on Mexican goods are:
Executive Order (E.O.) 14194 of February 1, 2025 “Imposing Duties to Address the Situation at Our Southern Border;”
E.O. 14198 of February 3, 2025 “Progress on the Situation at Our Southern Border;”
E.O. 14227 of March 2, 2025 “Amendment to Duties to Address the Situation at Our Southern Border;” and
E.O. 14232 of March 6, 2025 “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Southern Border.”
Orders not focusing specifically on Mexico but which have increased duties on imports to the U.S. of goods from Mexico are:
Proclamation 10895 of February 10, 2025 “Adjusting Imports of Aluminum Into the United States;”
Proclamation 10896 of February 10, 2025 “Adjusting Imports of Steel Into the United States;” and
Proclamation 10908 of March 26, 2025 “Adjusting Imports of Automobiles and Automobile Parts Into the United States.”
To date, the Mexican government has not taken retaliatory action against the U.S. and instead has sought to address U.S. tariffs and related issues through dialogue and cooperation.
It is important for companies and persons in the U.S. and Mexico that may be affected by the wide-reaching tariffs to understand the products to which U.S. duty increases apply, the duty rates, and the terms and conditions of the trade rules.
Executive Order 14194 of February 1, 2025 - Imposing 25% IEEPA Tariffs Effective February 4, 2025
President Trump issued E.O. 14194 “Imposing Duties to Address the Situation at Our Southern Border” on February 1, 2025. The legal basis for the order was the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act (NEA), Section 604 of the Trade Act of 1974, and Title 3, Section 301, of the United States Code.
The order declared and reiterated a national emergency under the NEA and IEEPA in response to illegal immigration, illicit drug trafficking, and related criminal activity, in which the order asserts Mexico has played a “central role,” as well as the failure of the Mexican government “to arrest, seize, detain, or otherwise intercept [drug trafficking organizations], other drug and human traffickers, criminals at large, and illicit drugs.” In response, the president invoked his authority under Section 1702(a)(1)(B) of IEEPA to impose ad valorem tariffs on articles that are products of Mexico.
The executive order imposed a 25% ad valorem rate of duty (in addition to any other duties, fees, exactions, or charges) on all articles that are products of Mexico, as defined by a Federal Register notice, with some exceptions.
The 25% duty rate applied to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. Eastern Time (ET) on February 4, 2025. Goods entered for consumption are goods imported to the U.S. for commercial, business, or personal use that go directly into U.S. commerce without any time or use restrictions. Goods withdrawn from warehouse for consumption are items imported to the U.S. and placed, without payment of duties at that time, in a bonded warehouse for purposes such as storage, repacking, or sorting and which are later withdrawn from the warehouse for use.
Goods entered for consumption or withdrawn from warehouse for consumption that were loaded onto a vessel at the port of loading or were in transit on the final mode of transport prior to entry into the U.S. before 12:01 a.m. ET on February 1, 2025, were not to be subject to the additional duty if the importer certified to U.S. Customs and Border Protection (CBP) in the manner specified in the Federal Register notice.
The executive order also stated that:
The president could increase or expand the duties if the Mexican government retaliated in response to the action through import duties on U.S. exports to Mexico or similar measures.
The U.S. Secretary of Homeland Security would identify in the Federal Register notice the necessary modifications to the Harmonized Tariff Schedule of the United States (HTSUS), which lays out the tariff rates and statistical categories for all goods imported to the U.S.
Mexico products (except for those eligible for admission under “domestic status”) that were subject to the duties and admitted to a U.S. foreign trade zone on or after 12:01 a.m. ET on February 4, 2025, were to be admitted to the zone as “privileged foreign status goods.” Upon their entry for consumption, the items were to be subject to the duty rates that applied at the time of their admission to the foreign trade zone.
No drawback would be available with respect to the duties. Drawback is the refund of certain duties, taxes, and fees for some imported goods that are later exported or destroyed.
Duty-free de minimis treatment (which applies to certain low-value shipments generally imported to the U.S. directly by consumers) would not be available for items subject to the duties.
Items in transactions that IEEPA does not authorize the president to regulate or prohibit were excluded from the duties. These include:
Donations of articles such as food, clothing, and medicine that are intended to be used for the relief of human suffering, except in certain cases specified by U.S. law;
Information or informational materials such as publications, films, posters, photographs, and artworks, except for those subject to certain security-oriented controls; and
Baggage accompanying travelers for their personal use.
Executive Order 14198 of February 3, 2025 - Postponing Effectiveness of 25% IEEPA Tariffs to March 4, 2025
President Trump issued E.O. 14198 “Progress on the Situation at Our Southern Border” on February 3. In that order, the president determined that the Mexican government had taken “immediate steps” to cooperate in countering the illegal migration and illicit drug crisis. However, the order stated that the U.S. government would require additional time to determine whether the steps were sufficient to alleviate the crisis and resolve the stated threat to U.S. national security.
Consequently, the order postponed the effective time and date of the additional 25% ad valorem duty to 12:01 a.m. ET on March 4, 2025.
The order also withdrew the exception for goods entered for consumption or withdrawn from warehouse for consumption that were loaded onto a vessel at the port of loading or were in transit on the final mode of transport prior to entry into the U.S. before 12:01 a.m. ET on February 1, 2025.
The order stated that the U.S. government would continue to assess the situation on the U.S.-Mexico border and the president would take the necessary steps, including implementing the tariffs, if the situation worsened or the Mexican government failed to take “sufficient steps” to alleviate the crisis.
Executive Order 14227 of March 2, 2025 - Making Available Duty-Free De Minimis Treatment for Articles Subject to IEEPA Duties
President Trump issued E.O. 14227 “Amendment to Duties to Address the Situation at Our Southern Border” on March 2. The order makes available duty-free de minimis treatment for articles otherwise covered by E.O. 14194 (as amended by E.O. 14198) until such time that the Secretary of Commerce notifies the president that adequate systems are in place to process and collect tariff revenue for the items fully and quickly.
CBP Notice of March 3, 2025 - Implementing the IEEPA Duties
On March 3, CBP provided guidance on the implementation of the additional duties in a notice titled “Notice of Implementation of Additional Duties on Products of Mexico Pursuant to the President’s Executive Order 14194, Imposing Duties to Address the Situation at Our Southern Border.” It was published in the Federal Register as 2025-03665 (90 FR 11429) on March 6, 2025.
The notice identifies the specific changes to the HTSUS necessary to implement E.O. 14194, as amended. In particular, it modifies subchapter III of chapter 99 of the HTSUS, effective as of 12:01 a.m. ET on March 4, 2025. The notice applies to articles that are products of Mexico.
The notice establishes three new HTSUS headings:
9903.01.01 “Except for products described in heading 9903.01.02 and heading 9903.01.03, articles the product of Mexico, as provided for in U.S. note 2(a) to this subchapter.” This heading applies to the goods subject to the new 25% ad valorem duty rate. According to U.S. note 2(a), this heading does not apply to items described in the new headings 9903.01.02 or 9903.01.03 or to products for personal use included in accompanied baggage of persons arriving in the U.S. Items in 9903.01.01 are also subject to the general duty rates that apply to products of Mexico that are entered under subheadings in chapters 1 to 97 of the HTSUS. The additional duties apply to both goods of Mexico (under the rules of origin set forth in Part 102, Title 19 of the Code of Federal Regulations), as applicable, and goods for which Mexico was the last country of substantial transformation prior to their importation to the U.S.
Products of Mexico eligible for special tariff treatment under general note 3(c)(i) of the HTSUS, such as those under the U.S.-Mexico-Canada Agreement (USMCA), or eligible for temporary duty exemptions or reductions under subchapter II of chapter 99, were to be subject to the additional ad valorem rate of duty imposed in 9903.01.01, though this changed on March 6.
The additional duties will not apply to goods for which entry is properly claimed under a provision of chapter 98 pursuant to applicable CBP regulations and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under 9802.00.80 (certain articles assembled abroad from U.S.-product components and exported in a ready-to-assemble condition) and 9802.00.40, 9802.00.50, and 9802.00.60 (certain articles returned to the U.S. after having been exported to be enhanced in value or condition).
In the case of goods entered under 9802.00.80, the additional duties apply to the value of the article assembled abroad (in Mexico), minus the cost or value of the U.S. products.
In the cases of goods entered under 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed in Mexico.
The ad valorem rate of duty in 9903.01.01 is in addition to any antidumping, countervailing, and other duties, taxes, fees, exactions, and charges that apply to products described in 9903.01.01.
The de minimis exemption will continue to be available for articles covered by 9903.01.01 that are otherwise eligible for the exemption. However, the exemption will cease to be available once the Secretary of Commerce notifies the president that adequate systems are in place “to fully and expediently process and collect tariff revenue applicable” for the covered articles.
9903.01.02 “Articles the product of Mexico that are donations, by persons subject to the jurisdiction of the United States, of articles such as food, clothing, and medicine, intended to be used to relieve human suffering, as provided for in U.S. note 2(b) to this subchapter.” This heading applies to certain items that are exempted from the new duty rates, except in circumstances described in U.S. note 2(b). The importer must declare the goods under the heading 9903.01.02 to qualify for the exemption.
9903.01.03 “Articles the product of Mexico that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.” This heading applies to certain items that are exempted from the new duty rates. The importer must declare the goods under the heading 9903.01.03 to qualify for the exemption.
The notice reiterated that:
Articles that are products of Mexico, excluding those IEEPA does not authorize the president to regulate or prohibit, are eligible for admission to a U.S. foreign trade zone under “domestic status” and are admitted into a U.S. foreign trade zone on or after 12:01 a.m. ET on March 4 must be admitted as “privileged foreign status.” The articles will be subject, upon entry for consumption, to the additional duties imposed by the executive order and the rates of duty related to the classification order under the applicable HTSUS subheading in effect at the time of admission to the foreign trade zone.
No drawback is available with respect to the additional duties imposed pursuant to the executive order.
Executive Order 14232 of March 6, 2025 - Excluding Imports of USMCA Qualifying Products from the IEEPA Duties and Reducing the Duty Rate on Imports of Potash
President Trump issued E.O. 14232 “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Southern Border” on March 6. The order stated that it was necessary to adjust the tariffs imposed on articles of Mexico in order to minimize disruption to the U.S. auto industry and automotive workers.
Consequently, the order excluded articles entered free of duty as a good of Mexico under the terms of HTSUS general note 11 (which relates to goods under the USMCA), including any treatment set forth in HTSUS subchapter XXIII of chapter 98 and subchapter XXII of chapter 99, as related to the USMCA, from the additional ad valorem rate of duty specified in E.O. 14191. Chapter 98 deals with special classification provisions, such as for items exported and then returned to the U.S., while chapter 99 relates to measures stemming from temporary legislation and executive actions and certain agricultural import provisions.
The order also reduced the rate of duty from 25% to 10% on imports of potash that are not among the articles entered free of duty as a good of Mexico under the terms of HTSUS general note 11. Potash is mined and manufactured salt containing potassium. It is often used as a fertilizer.
The amendments became effective with respect to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on March 7, 2025.
CBP Notice of March 6, 2025 - Updated Guidance on Implementation of the IEEPA Duties
On March 6, CBP provided further guidance on the implementation of the Mexico duties in a notice titled “Amendment to Notice of Implementation of Additional Duties on Products of Mexico Pursuant to the President’s Executive Order 14194, Imposing Duties to Address the Situation at Our Southern Border.” It was published in the Federal Register as 2025-03900 (90 FR 11746) on March 11, 2025. In response to E.O. 14232, the notice modifies subchapter III of chapter 99 of the HTSUS, effective as of 12:01 a.m. ET on March 7, 2025.
The notice establishes two new HTSUS headings:
9903.01.04 “Articles that are entered free of duty under the terms of general note 11 to the HTSUS, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTS, as related to the USMCA.” This heading applies to articles that are entered for consumption free of duty, originating under the terms of HTSUS general note 11, as related to the USMCA. These articles will not be subject to the additional ad valorem rate of duty described in 9903.01.01. Imported products of Mexico that IEEPA does not authorize the president to regulate or prohibit still must be declared and entered under HTSUS 9903.01.02 or 9903.01.03, as applicable.
9903.01.05 “Potash that is a product of Mexico, as provided for in U.S. note 2(c) to this subchapter.” Potash not qualifying for duty-free treatment under the USMCA but which is a product of Mexico entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on March 7, 2025, will be subject to the reduced additional 10% ad valorem rate of duty provided for in 9903.01.05 instead of the 25% ad valorem rate of duty provided for in 9903.01.01. This duty is in addition to the general rates of duty imposed on products of Mexico entered under subheadings in chapters 1 to 97 of the HTSUS.
The notice modifies the language of 9903.01.01, 9903.01.02, and 9903.01.03 to account for the new headings.
Furthermore, the notice states that:
The de minimis exemption continues to be available for articles covered by 9903.01.04 and 9903.01.05 that are otherwise eligible for exemption, including for eligible articles sent to the U.S. through the international postal network. However, it will cease to be available once the Secretary of Commerce notifies the president that adequate systems are in place to fully and expediently process and collect tariff revenue for the items.
The additional 10% ad valorem rate of duty in 9903.01.05 also applies to products of Mexico that are eligible for temporary duty exemptions or reductions under HTSUS chapter 99, subchapter II.
Moreover, products declared under 9903.01.05 will continue to be subject to antidumping, countervailing, or other duties, taxes, fees, exactions, and charges that apply to such products as well as the additional 10% duty imposed in 9903.01.05.
The additional 10% ad valorem rate of duty identified in 9903.01.05 will not apply to goods for which entry is properly claimed under a provision of chapter 98 pursuant to applicable CBP regulations and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under 9802.00.80, 9802.00.40, 9802.00.50, and 9802.00.60. In the case of goods entered under 9802.00.80, the additional duties apply to the value of the article assembled in Mexico, minus the cost or value of the U.S. products. In the cases of goods entered under 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed in Mexico.
Articles that are products of Mexico, excluding those IEEPA does not authorize the president to regulate or prohibit, are eligible for admission to a U.S. foreign trade zone under “domestic status” and are admitted into a U.S. foreign trade zone on or after 12:01 a.m. ET on March 4 must be admitted as “privileged foreign status.” The articles will be subject, upon entry for consumption, to the additional duties imposed by the executive order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission to the foreign trade zone.
No drawback is available with respect to the additional duties imposed pursuant to the executive orders.
CBP Cargo Systems Messaging Service (CSMS) bulletin #64335789 “Guidance - Update on Additional Duties on Imports from Mexico - USMCA Qualifying Products and Potash” identifies the applicable HTSUS subheadings for potash:
2815.20.0050 Potassium hydroxide (Caustic potash), in solid form;
2815.20.0090 Potassium hydroxide (Caustic potash), other;
3104.20.0010 Potassium chloride, containing not more than 62 percent by weight of potassium oxide (K2O);
3104.20.0050 Potassium chloride, containing more than 62 percent by weight of potassium oxide (K2O);
3104.30.0000 Potassium sulfate;
3104.90.0100 Potassic mineral or chemical fertilizer, other;
3105.10.0000 Products of chapter 31 in tablets or similar forms or in packages of a gross weight not exceeding 10 kg;
3105.20.0000 Mineral or chemical fertilizers containing the three fertilizing elements nitrogen, phosphorus and potassium; and
3105.60.0000 Mineral or chemical fertilizers containing the two fertilizing elements phosphorus and potassium.
Proclamations 10895 and 10896 of February 10, 2025 - Applying Section 232 Aluminum and Steel Tariffs to Products of Mexico
On February 10, 2025, President Trump issued Proclamation 10895 “Adjusting Imports of Aluminum Into the United States” and Proclamation 10896 “Adjusting Imports of Steel Into the United States.” Proclamation 10895 was published in the Federal Register as 2025-02832 (90 FR 9807) on February 18. Proclamation 10896 was published in the Federal Register on February 18 as 2025-02833 (90 FR 9817).
The proclamations affected imports of aluminum and steel to the U.S. from Mexico in three significant ways: they eliminated Mexico’s exemptions from Section 232 (national security-related) duties on imports of aluminum and steel articles, they increased the duty rates that apply to aluminum and steel imports, and they expanded the universe of items to which the duties apply.
The proclamations eliminated exemptions for Mexico and other countries with which the U.S. has a security relationship from Section 232 ad valorem tariffs and related restrictions. Proclamation 10895 rendered ineffective Proclamations 9893 (2019) and 10782 (2024) with respect to imports of aluminum articles and derivative aluminum articles from Mexico and Clause 1 of Proclamation 9980 (2020) as applicable to imports of derivative aluminum articles from Mexico. Proclamation 10896 rendered ineffective Proclamations 9894 (2019) and 10783 (2024) with respect to imports of steel articles from Mexico, Clause 1 of Proclamation 9740 (2018) as applicable to imports of steel articles or derivative steel articles from Mexico, and Clause 1 of Proclamation 9980 (2020) as applicable to imports of derivative steel articles from Mexico.
The proclamations also increased the additional ad valorem duty rates and related restrictions for imports of specified aluminum and steel articles and derivative articles from Mexico and other countries:
As of 12:01 a.m. ET on March 12, 2025, the tariff rates on specified aluminum articles and derivative aluminum articles increased from an additional 10% ad valorem to an additional 25% ad valorem (in addition to any other duties, fees, exactions, or charges that apply);
Also as of 12:01 a.m. ET on March 12, all imports from all countries of specified steel articles and derivative steel articles became subject to an additional 25% ad valorem duty rate, in addition to any other duties, fees, exactions, or charges that apply;
The Secretary of Commerce will no longer consider any new aluminum or steel product exclusion requests or renew any product exclusions in effect as of February 10, 2025, and the Secretary will take all actions necessary to terminate the product exclusion process;
All general approved exclusions became ineffective as of March 12, 2025;
Importers of aluminum and steel derivative articles must provide CBP with information necessary to identify the aluminum and steel content used in the manufacture of derivative articles covered by the proclamations;
Any provisions of previous proclamations enabling the Commerce Secretary to grant relief for certain products from the additional duties generally were revoked;
Any aluminum, steel, or derivative article subject to the duties that is admitted to a U.S. foreign trade zone may be admitted only under privileged foreign status, unless it is eligible for admission under domestic status; upon entry for consumption, the item will be subject to the appropriate duty rates for the item’s HTSUS classification; and
No drawback will be available with respect to the duties.
The proclamations applied the duties to imports of a wide range of aluminum, steel, and derivative articles, including (not comprehensive):
Unwrought aluminum - HTSUS 7601;
Aluminum bars, rods, and profiles - HTSUS 7604;
Aluminum foil - HTSUS 7607;
Stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and with steel core, not electrically insulated, the foregoing fitted with fittings or made up into articles - HTSUS 7614.10.50;
Bumper stampings of aluminum, the foregoing comprising parts and accessories of the motor vehicles of HTSUS 8701 to 8705 - HTSUS 8708.10.30;
Body stampings of aluminum, for tractors suitable for agricultural use - HTSUS 8708.29.21;
Aluminum doors, windows, and their frames and thresholds for doors - HTSUS 7610.10.00;
Aluminum ladders - HTSUS 7616.99.5130;
Hinges and parts thereof, of iron or steel, of aluminum or of zinc, suitable for interior and exterior doors (except garage, overhead or sliding doors) - HTSUS 8302.10.6030;
Metal furniture of a kind used in offices - HTSUS 9403.10.00;
Bars and rods provided for in HTSUS 7213, 7214, 7215, 7227, or 7228;
Tubes, pipes and hollow profiles provided for in HTSUS 7304 or 7306;
Nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper), suitable for use in powder-actuated handtools, threaded - HTSUS 7317.00.30;
Iron or steel skid chain not over 8 mm in diameter - HTSUS 7315.20.10;
Iron or steel nuts - HTSUS 7318.16.00;
Bulldozer or angledozer blades - HTSUS 8431.42.00; and
Beer made from malt in containers each holding not over 4 liters - 7612.90.10.
Additional rules governing the application of Section 232 duties to aluminum and steel imports are in Proclamations 10895 and 10896 and in Department of Commerce Bureau of Industry and Security Notices XRIN 0694-XC113 and XRIN 0694-XC114 of March 3, 2025 (appearing in the Federal Register on March 5).
Traders should be aware that the aluminum and steel tariffs “stack” with the IEEPA tariffs on imports of articles from Mexico and the tariffs on imports of automobiles and automobile parts.
Proclamation 10908 of March 26, 2025 - Applying Section 232 Automobile Tariffs to Products of Mexico
On March 26, 2025, President Trump issued Proclamation 10908 “Adjusting Imports of Automobiles and Automobile Parts Into the United States.” It was published in the Federal Register as 2025-05930 (90 FR 14705) on April 3. The proclamation imposed an additional 25% Section 232 ad valorem tariff on many types of automobiles - passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks - entered for consumption or withdrawn from warehouse for consumption starting at 12:01 a.m. ET on April 3, 2025. The proclamation also imposed a 25% additional tariff on specified automobile parts starting no later than May 3, 2025.
Any automobile or automobile part subject to the duties that is admitted to a U.S. foreign trade zone may be admitted only under privileged foreign status, unless it is eligible for admission under domestic status; upon entry for consumption, the item will be subject to the appropriate duty rates for the item’s applicable HTSUS subheading.
Furthermore, no drawback is available with respect to the duties.
Proclamation 10908 provides for partial tariff relief for automobiles that qualify for preferential tariff treatment under the USMCA. Importers of such automobiles can submit documentation to the Commerce Secretary identifying the amount of U.S. content in a particular imported model. The Commerce Secretary then may approve the application of the 25% tariff only to the value of the non-U.S. content. However, if CBP determines that the declared value of non-U.S. content of an automobile is inaccurate, the 25% tariff will apply to the full value of the automobile, regardless of the actual U.S. content.
Proclamation 10908 applies the additional 25% duty to many HTSUS headings for automobiles and automobile parts, including (not comprehensive):
Gas-powered passenger motor vehicles in HTSUS 8703.22.01, 8703.23.01, and 8703.24.01;
Diesel passenger motor vehicles in HTSUS 8703.31.01, 8703.32.01, and 8703.33.01;
Hybrid motor vehicles in HTSUS 8703.40.00, 8703.50.00, and 8703.60.00;
Electric motor vehicles in HTSUS 8703.80.00;
Goods transport motor vehicles in HTSUS 8704.21.01, 8704.31.01, and 8704.41.00;
Brake hoses in HTSUS 4009.12.0020, 4009.22.0020, 4009.32.0020, and 4009.42.0020;
Rearview mirrors in HTSUS 7009.10.00;
Piston engines in HTSUS 8407.31.00, 8407.32, 8407.33, 8407.44, and 8408.20.20;
Direct current (DC) motors in HTSUS 8501.32, 8501.33, and 8501.34;
Radio-broadcast receivers for motor vehicles in HTSUS 8527.21 and 8527.29;
Motor vehicle bodies in HTSUS 8707;
Windshields and other vehicle windows in HTSUS 8708.22;
Brakes and servo-brakes in HTSUS 8708.30;
Steering wheels in HTSUS 8707.94; and
Various instruments in HTSUS 9029.10 and 9029.20.4080.
The proclamation provides for several exemptions:
Automobiles and automobile parts for which entry is claimed under a provision of chapter 98 of the HTSUS are exempted from the duties, unless they are classified under HTSUS 9802.00.60. In that case, the additional 25% duties apply to the full value of the item. HTSUS 9802.00.60 applies to an article of metal manufactured in the U.S. that is exported for further processing and then returns (or the article resulting from further processing abroad returns) to the U.S. for further processing.
Passenger vehicles and light trucks manufactured at least 25 years prior to the year of the date of entry are exempted from the additional duties.
The 25% tariff will not apply to imports of automobile parts that qualify for preferential tariff treatment under the USMCA until the Secretary of Commerce establishes a process to apply the tariff exclusively to the value of the automobile parts’ non-U.S. content and publishes a notice in the Federal Register. However, this temporary exemption does not apply to knock-down kits or parts compilations.
Additional rules governing the application of Section 232 duties to imports of automobiles and automobile parts are in Proclamation 10908 and in CBP CSMS #64624801 “Guidance: Import Duties on Certain Automobiles,” published on April 2, 2025.
Traders should be aware that the automobile tariffs “stack” with the IEEPA tariffs on imports of articles from Mexico and the tariffs on imports of aluminum, steel, and derivative articles.
Persons Affected and SECURUS Services
These policies are relevant to many companies, including:
Companies in the U.S. that rely on Mexican suppliers for materials, parts, components, and other goods, including aluminum, steel, automotive, and many other products;
Producers and exporters in Mexico, including in the agricultural, automobile, energy, computers, and other electronics sectors, with existing or plans to develop business relationships in the U.S.; and
Companies of other countries with manufacturing, processing, or assembly operations in Mexico that export their Mexican output to the U.S.
SECURUS Strategic Trade Solutions, LLC provides guidance, training, and information to companies and individuals seeking to understand and navigate international trade rules and regulations.
If you have questions about how these policies could affect your business, please contact SECURUS Strategic Trade Solutions at Info@SECURUSTrade.com for a consultation.
Author: Richard Glen Young, Richard.Young@SECURUSTrade.com, April 19, 2025