US tariffs on automotive parts
As of a week ago (29th. of July, 2025), the UK’s Independent Automotive Aftermarket Federation (IAAF) presented the latest update about US tariffs on automotive parts.
Automotive parts subject to 10 per cent tariffs must be products of the United Kingdom and are for use in vehicles that are products of the UK.
Car exports from the EU to the U.S. face the baseline tariff of 15 per cent in the deal struck on July 27th.
Britain has negotiated a lower tariff of 10 percent for its car sector but it also has a 100,000-vehicle quota which leaves little room for export growth.
Back on the 20th. of June 2025, Trump issues executive order as per below:
Sec. 2. Automobiles and Automobile Parts.
(a) I hereby establish an annual tariff-rate quota of 100,000 automobiles as classified in heading 8703 of the Harmonized Tariff Schedule of the United States (HTSUS) and as further specified in note 33(b) to subchapter III of chapter 99 of the HTSUS for automobiles that are products of the United Kingdom.
Imports of automobiles within the tariff-rate quota that would otherwise be subject to a 25 per cent tariff under Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), shall instead be subject to a 7.5 per cent tariff, in addition to the most-favored-nation rate for automobiles of 2.5 per cent, for a combined tariff of 10 per cent.
Imports of automobiles in excess of the tariff-rate quota shall remain subject to the full duties imposed by Proclamation 10908. The tariff-rate quota shall be adjusted for calendar year 2025 to reflect the General Terms’ operative date of May 8, 2025. The quota shall be effective 7 days after the publication of this order in the Federal Register.
(b) Automotive parts specified in note 33(g) to subchapter III of chapter 99 of the HTSUS that would otherwise be subject to a 25 per cent tariff under Proclamation 10908 shall instead be subject to a total tariff of 10 per cent (including any most-favored-nation tariffs), provided that they are products of the United Kingdom and are for use in automobiles that are products of the United Kingdom. This change shall be effective as of the date of the publication of the Federal Register notice described in subsection (c) of this section.
(c) Within 7 days of the date of publication of this order in the Federal Register, the Secretary of Commerce (Secretary), in consultation with the United States International Trade Commission (ITC) and U.S. Customs and Border Protection (CBP), shall publish a notice in the Federal Register modifying the HTSUS consistent with this section, if necessary.
(d) The Secretary may issue rules, regulations, guidance, and procedures to carry out the provisions of this section.