On May 20, 2025, the U.S. Department of Commerce (USDOC) began accepting tariff relief submissions from importers of USMCA-eligible vehicles seeking to reduce liability under the Section 232 auto duties. This new process implements the President’s March 26 proclamation authorizing USDOC to apply the 25% tariff only to the non-U.S. content of qualifying automobiles imported from Mexico or Canada.
VEHICLE IMPORTS ELIGIBLE FOR TARIFF REDUCTION
Relief applies exclusively to passenger vehicles and light trucks imported from Canada or Mexico that meet both of the following conditions:
- Qualify for preferential tariff treatment under the USMCA, and
- The vehicles are certified for North American origin, labor value content, and materials thresholds.
If approved, the 25% Section 232 tariff applies only to the non-U.S. content in the vehicle, as verified by the USDOC. At this time, vehicle parts do not qualify for this tariff reduction.
DOCUMENTATION REQUIREMENTS FOR SECTION 232 TARIFF RELIEF
Importers must submit a model line–level filing certified by a senior corporate officer to be considered for relief.
Required documentation includes:
- Declared customs value of the vehicle
- Total value of U.S. content (based on parts sourced, produced, or transformed in the United States)
- Non-U.S. content (calculated by subtraction)
- Final assembly location(s) and overall production footprint as defined in Article 4.1 of USMCA
- Proof of USMCA eligibility and associated origin/labor certifications
- Entry numbers for any retroactive treatment requests
Documentation must be submitted electronically via email to [email protected].
USMCA IMPORTED AUTOMOBILE TARIFF RELIEF DEADLINES AND RECERTIFICATION RULES
Eligibility determinations are valid for six months. To maintain tariff relief treatment, importers must resubmit documentation at least 30 days before the expiration. Any material changes in sourcing that increase or decrease U.S. content must be reported and accompanied by an updated filing.
USDOC may, at its discretion, apply this tariff relief retroactively to vehicles imported on or after April 3, 2025.
PENALTIES FOR INACCURATE U.S. CONTENT CLAIMS
Declared U.S. content must align with the Commerce Department’s final determination. If discrepancies arise, the 25% tariff will apply both retroactively and prospectively to the full value of all affected vehicle entries. Importers should maintain audit-ready records and ensure internal alignment before submission.
NEXT STEPS FOR USMCA VEHICLE IMPORTERS
Due to the complexity of the documentation requirements and the risk of retroactive penalties, importers are strongly encouraged to consult with their licensed customs broker or customs attorney before submission. A professional review ensures accuracy, supports compliance, and mitigates exposure to future enforcement.
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