Canadian automobile parts won’t be hit with Trump’s tariffs

By Canadian Press on May 1, 2025.

WASHINGTON — U.S. Customs and Border Protection guidance released today says automobile parts compliant with the Canada-U.S.-Mexico Agreement on trade will not be hit with President Donald Trump’s tariffs.

The 25 per cent auto part duties were set to go in place on May 3.

The guidance says the exemption does not apply to automobile knock-down kits or parts compilations.

Trump signed an executive order earlier this week he says will give some temporary relief to an automotive industry besieged by multiple tariffs.

The order provides a rebate to automakers that finish their vehicles in the U.S. and halted some additional tariffs, like steel and aluminum, from stacking on the auto duties.

Trump slapped a 25 per cent tariff on vehicle imports to the United States earlier this month, but made a carveout for the American-made parts of cars compliant with the continental trade pact.

This report by The Canadian Press was first published May 1, 2025.

Kelly Geraldine Malone, The Canadian Press