Trump Raises Tariffs 25% on Imported Auto Parts

May 03, 2025 | News On Japan

WASHINGTON DC, May 03, 2025 (News On Japan) - The Trump administration has imposed a 25% additional tariff on imported auto parts, including engines and transmissions, with the measure taking effect at 1:01 p.m. Japan time on May 3rd.

The tariff targets major components such as engines and transmissions being brought into the U.S., with the aim of encouraging car production within the country and boosting domestic employment. This move follows a similar 25% tariff placed on imported automobiles on April 3rd.

In a bid to soften the impact on domestic automakers, the Trump administration announced on April 29th that it would implement relief measures to reduce the burden of the new tariffs for manufacturers producing cars within the United States. However, industry analysts warn that the high-tariff policy is still expected to significantly affect the automotive sector.

Japanese officials have called for the removal of these tariffs during Japan-U.S. trade negotiations held on May 1st.

While the administration is seeking to pressure automakers to shift production bases to the United States, it has also introduced a grace period for companies to relocate their parts production domestically. This relief will be phased out, with the tariff benefits set to be completely eliminated by the third year.

Source: FNN

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