Last reviewed Oct 30, 2026.

New cars awaiting export at Bremerhaven, Germany, 2024. Photo: Dietmar Rabich / Wikimedia Commons, CC BY-SA 4.0.
The short answer, as of October 30, 2026. Imported vehicles and most imported auto parts pay a 25% US tariff by default, in effect since April and May 2025. Trade deals cut it for some partners: cars and parts from the EU, Japan and South Korea pay 15% in total, up to 100,000 cars a year from the UK pay 10%, and parts from Taiwan pay 15%. A vehicle that qualifies under USMCA pays the 25% on its non-US content only, and USMCA-qualifying parts pay nothing for now. None of the 2026 Canada tariff actions, including the Oct 23 change to the Canadian goods list, changed any of those rates for cars or parts.
Every rate and date on this page links to the government document that set it. We update the page the day a new action changes a row, and subscribers get that change in the next morning's email. Subscribe free, or bookmark suspension.news/tariffs.
On this page
The current state, at a glance
What is taxed | Rate | Since | Source |
|---|---|---|---|
Imported vehicles (default) | 25% | Apr 3, 2025 | |
Imported auto parts (default, specified categories) | 25% | May 3, 2025 | |
USMCA-qualifying vehicles | 25% on non-US-content value only | Apr 3, 2025 | |
USMCA-qualifying auto parts | Exempt (temporary) | May 3, 2025 | |
UK vehicles | 10% in total, up to 100,000 vehicles a year; 25% above the quota | Jun 30, 2025 | |
UK auto parts | 10% | Jun 30, 2025 | |
EU vehicles and auto parts | 15% in total | Aug 1, 2025 (set Sept 25, 2025, backdated) | |
Japan vehicles and auto parts | 15% in total | Sept 16, 2025 | |
South Korea vehicles and auto parts | 15% in total | Nov 1, 2025 (set Dec 4, 2025, backdated) | |
Taiwan auto parts (Taiwanese vehicles stay at 25%) | 15% in total | May 1, 2026 (set May 28, 2026, backdated) |
The 25% default is the Section 232 tariff, and the country rows are deals that cap it, written into the tariff schedule as headings of their own. "15% in total" replaces the usual 2.5% car duty plus 25%: an EU, Japanese or Korean car pays 15% all-in, and a product whose ordinary duty is already 15% or more, such as a pickup under the 25% light-truck duty, pays no Section 232 tariff on top. The US-Canada tariff dispute that began in July 2026 is a separate measure on other goods, and it has left every row as it was. The timeline below shows why.
Dates to watch
These are the scheduled or claimed events that could change a row above. If one does, the table changes the same day.
Possibly before Nov 3, 2026. Reuters reported on Oct 26 that US-Canada talks on the Section 232 tariffs on Canadian steel and autos had resumed. A Canadian source told Reuters a deal was possible before the Nov 3 midterms; US sources said the administration wants further concessions. Nothing is signed. Reuters via The Japan Times, Oct 26, 2026
Date unset. US-Mexico talks on autos, steel and aluminum. Mexican officials told Automotive News on Sept 30, 2026 that negotiators were working to cut the US tariff on Mexican light vehicles from 25% to 15%. On Oct 15 the Wall Street Journal reported that progress had stalled, with Commerce Secretary Howard Lutnick opposing significant cuts to the 25% rate, per CBT News. Nothing is signed. The same talks carry the US proposal to lift USMCA's regional content threshold from 75% to 82%.
Jan 1, 2027, claimed. Trump said on Truth Social on Aug 24, 2026 that tariffs on Canadian cars, trucks, parts and steel would rise to 50% on this date. No proclamation or Federal Register notice implements it as of this review. If one appears, it becomes the first increase in the vehicle rate since the tariff took effect.
January 2027. The next scheduled window in Commerce's parts process, which lets manufacturers ask that more part categories be added to the 25% parts tariff. The process schedules a window each January, April, July and October, but the last opening notice in the Federal Register was for April 2026; none was published for July or October. A window can widen the list of taxed parts; it cannot change the rate. Federal Register, Sept 17, 2025; Federal Register, Mar 24, 2026
Jan 12, 2027. Deadline for public comments ahead of the 2027 USMCA joint review, the annual review the agreement moved to after the US declined in July to extend it for 16 years. The review could reopen the rules of origin that decide how much of a North American car counts as US content. USTR notice, Oct 5, 2026
What changed recently
Newest first. Each entry states up front what it did to the car tariff. Most of 2026's tariff headlines involved Canada, and none of those touched passenger cars, light trucks or auto parts; the rate cuts that did happen came from the 2025 trade deals at the bottom of this list.
Oct 23, 2026. No change to the car tariff. Another proclamation reshuffled the Canadian goods inside the 50% duty, effective Oct 30, 2026. It drops 22 products, including seaweed, plastic packaging, thin plywood, paperboard and some packaging machinery, and adds 100, nearly half of them carpets and rugs, plus cocoa powder, paints, soaps and shampoo, lubricants, MDF and wood flooring, paper, rubber floor mats, window air conditioners, chest freezers, power tools, lab reagents and canoes. None is a passenger car, light truck or anything on the Section 232 auto-parts list (the nearest are rubber floor mats and lubricants), and the all-terrain vehicles added in September stay on the list. Proclamation
Oct 20, 2026. No change to the car tariff. A New Jersey food importer, Gellert Global Group, sued at the Court of International Trade to overturn the Section 338 tariffs it pays on Canadian cheese and to recover those duties with interest. No ruling has been issued as of this review. CNBC
Sept 29, 2026. No change to the car tariff. The import ban on select Canadian goods took effect: some alcohol and dairy items, and motorcycles over 800cc. Cars, trucks and auto parts are outside its scope. Federal Register
Sept 8, 2026. No change to the car tariff. The White House imposed an import ban, rather than a duty, on select Canadian goods effective Sept 29, 2026: motorcycles over 800cc and some alcohol and dairy items. Cars, trucks and auto parts are outside its scope. Federal Register
Sept 8, 2026. No change to the car tariff. A second proclamation reshuffled the Canadian goods inside the existing 50% duty, adding all-terrain vehicles and dropping items including rock salt and cement, effective Sept 15, 2026. From that date the 50% also stacks on top of any Section 232 duty for the goods on the list. Passenger cars, light trucks and auto parts are still not on it. Federal Register; CSMS #69851916
Aug 24, 2026. Announced only. Trump said on Truth Social that tariffs on Canadian cars, trucks, auto parts and steel would rise to 50% on Jan 1, 2027, after trade talks collapsed. A social media post binds nothing at the border; see "Announced but not in effect" below.
Aug 22, 2026. No change to the car tariff. The 50% Section 338 duties on roughly 554 categories of other Canadian goods across the three lists (about 440 on the vehicle-dispute list, covering paper, cement, plywood, furniture, cosmetics, textiles, jewelry and toys, plus about 60 alcohol and 50 dairy lines) took effect after a brief suspension, once talks toward a lower Canada-specific vehicle rate broke down. CSMS #69606660
Aug 21, 2026. No change to the car tariff. Talks to cut Canada's vehicle rate from 25% to 15% collapsed, in part over a last-minute standoff on whether the cut would extend to medium- and heavy-duty trucks, according to people familiar with the talks. The 15% rate never took effect and the 25% rate kept applying throughout. Transport Topics, Aug 24, 2026
Aug 18, 2026. No change to the car tariff. The White House suspended all three 50% goods duties, due to start Aug 19, for three days, citing a Canadian commitment to remove its own discrimination against US vehicle exports. Proclamation 11056
Jul 20, 2026. No change to the car tariff. Three proclamations imposed the original 50% duties on three lists of Canadian goods, all due to start Aug 19, 2026: 11046 offsets Canada's treatment of US alcohol, 11047 its dairy quotas, and 11048 its own 25% tariff on US-built vehicles. Each exempts anything already taxed under Section 232, which is why vehicles and parts are absent from the lists. Later changes to the goods list, in September and October, amend 11048. Proclamation 11048; Proclamation 11046; Proclamation 11047
May 1, 2026. Parts rate cut for Taiwan. Taiwanese auto parts moved from 25% to 15% in total under a US-Taiwan investment agreement. Taiwanese vehicles were not included. The notice was published May 28 and backdated to May 1. Federal Register
May 1, 2026. Announced only. Trump said he would raise the tariff on EU cars and trucks from 15% to 25%. No implementing document followed, and the 15% EU rate is still in the tariff schedule.
Jan 26, 2026. Announced only. Trump posted that South Korean cars would go back to 25%. No implementing document followed, and the 15% Korea rate is still in the tariff schedule.
Dec 4, 2025. Rate cut for South Korea. Korean vehicles and parts moved to 15% in total, backdated to Nov 1, 2025. Federal Register
Nov 1, 2025. New tariff on medium and heavy trucks. A separate Section 232 tariff put 25% on medium and heavy trucks and their parts and 10% on buses. Passenger cars and light trucks were unaffected. Proclamation 10984
Sept 25, 2025. Rate cut for the EU. EU vehicles and parts moved to 15% in total, backdated to Aug 1, 2025. Federal Register
Sept 16, 2025. Rate cut for Japan. Japanese vehicles and parts moved to 15% in total. Federal Register
Jun 30, 2025. Rate cut for the UK. Up to 100,000 UK vehicles a year moved to 10% in total, with UK parts at 10%. Executive Order 14309
Carve-outs and exceptions
The exemptions attach to a vehicle's content, and to which law already covers a good, rather than to the vehicle itself. That is the detail most write-ups drop.
USMCA vehicles pay 25% on non-US content only. CBP calculates the tariff on the vehicle's value minus its documented US content, so the sticker price is the wrong base. The importer submits and verifies a US-content figure for each model. More US content means a smaller bill; less means something close to the full 25%. Federal Register, May 20, 2025
USMCA-qualifying auto parts are fully exempt from the parts tariff, for now. Proclamation 10908 calls the exemption temporary: Commerce is expected to replace it with a narrower rule that, like the vehicle rule, applies only to a part's US-origin content. Commerce has not issued that rule.
The country deals set a total, not an add-on. For the EU, Japan and South Korea, 15% is the whole duty on a car or part. Where a product's ordinary duty is already 15% or more, no Section 232 tariff is added at all.
A quarterly process can add parts to the tariff's scope. Commerce opened recurring submission windows (January, April, July, October) for manufacturers to request that specific parts be added to the 25% list. It widens what is covered; it never moves the rate, and it has nothing to do with the Canada dispute. Federal Register, Sept 17, 2025
A parts offset softens the tariff for US assembly. Automakers can offset part of their parts tariffs with a credit worth 3.75% of the sticker price of each vehicle they assemble in the US, through April 30, 2030. Proclamation 10984 set that end date in October 2025; the July 2026 Commerce notice added a matching offset for US engine makers. Proclamation 10984; Commerce notice, Jul 29, 2026
Medium and heavy trucks have their own tariff: 25% on trucks and their parts and 10% on buses since Nov 1, 2025, with a similar USMCA content rule. Proclamation 10984
Cars and auto parts stay off the Canada Section 338 list. Proclamation 11048 originally excluded anything already under a Section 232 duty. Since Sept 15, 2026 the 50% stacks on top of Section 232 for the goods the list names, which include all-terrain and some small off-road vehicles but no passenger cars, light trucks or auto parts. The only motorcycles on the original list were those over 800cc, and those have been banned outright since Sept 29, 2026; smaller motorcycles were never on it. The Oct 23 revision, effective Oct 30, adds no vehicles either. CSMS #69851916; Proclamation, Oct 23, 2026
Other 2026 tariffs exempt cars and parts. The temporary 10% Section 122 surcharge (Feb 24 to July 24, 2026) and the Section 301 tariffs that took effect Jul 24, 2026 both exclude goods covered by the Section 232 auto tariff. Proclamation 11012; USTR notice, Jul 28, 2026
Announced but not in effect
Kept apart from the table so a proposal never reads as a live rate.
A 50% rate on Canadian vehicles, trucks, parts and steel from Jan 1, 2027. Trump announced it on Truth Social on Aug 24, 2026, after trade talks with Canada broke down; outlets including CNBC reported it. No Federal Register notice or presidential proclamation implements it as of this review. Enacted as described, it would double the current 25% rate for Canadian-origin vehicles, parts and steel. Talks to ease the steel and auto tariffs have since resumed, according to Reuters via The Japan Times, with nothing signed.
A 25% rate on EU cars and trucks. Trump said on May 1, 2026 he would raise it from 15%, then gave the EU until July 4 to finish its side of the deal, which the EU approved in June. No implementing document was issued, and the tariff schedule still carries the 15% EU rate.
A 25% rate on South Korean cars. Trump posted on Jan 26, 2026 that he would raise it from 15%. No implementing document followed; the 15% Korea rate is still in the tariff schedule.
A 15% rate on Mexican light vehicles. Under negotiation, according to Mexican officials quoted by Automotive News on Sept 30, 2026, who put the effective rate at 10% to 12% once the US-content deduction applies. On Oct 15 the Wall Street Journal reported the talks had stalled over Commerce Secretary Howard Lutnick's opposition to significant cuts, per CBT News. Not signed.
A US-Canada deal cutting the Canada-specific vehicle rate from 25% to 15%. Reported as close to signed in mid-August 2026, with a side dispute over whether the content credit should count US content only or all North American content, and a last-minute split over extending the cut to medium- and heavy-duty trucks. Talks collapsed on Aug 21, 2026 and nobody signed. The 25% baseline, with its existing US-content deduction, applied the whole time.
A US proposal to raise USMCA's regional content threshold from 75% to 82%, with a 50% US-specific floor. Raised in bilateral US-Mexico talks that opened in June 2026, separate from the treaty-wide USMCA joint review. Still unresolved; a round scheduled for late September 2026 was postponed. No new threshold has taken effect.
What it means if you are buying a car
Where a car is built decides its tariff. Cars from the EU, Japan and South Korea pay 15%, UK cars within the quota 10%, and most other imports 25%. Those rates have been in place since 2025, so a price rise on one of those cars this year did not come from a new tariff on vehicles or parts. This page tracks tariffs on passenger cars, light trucks and their parts only; the Section 232 tariffs on steel, aluminum and copper, which apply to materials automakers buy, are not covered here.
A car assembled in Canada or Mexico is not taxed less by default. Its exposure depends on the manufacturer's documented US-content share, which varies by model and rarely reaches a window sticker.
The Canada dispute you read about this year, including the 50% duty, the three-day suspension, the September import ban and the October list changes, taxes goods such as textiles, cosmetics and, from Oct 30, carpets. It has not changed what a car or truck costs at the border.
Open threads that could change prices: the claimed Jan 2027 jump to 50% on Canadian vehicles, the resumed US-Canada talks on easing the auto tariff, the announced but unimplemented 25% rates for EU and Korean cars, and a possible 15% rate for Mexican vehicles. None is in effect as of this review.
Know the morning a row changes. The vehicle rates last moved in 2025, and the next change will arrive as a proclamation on a weekday morning, buried under a dozen headlines that read as if the car tariff moved when it did not. Suspension reads the document, updates this page, and tells you which it was. One email a day, free.
Suspension is the daily email that makes you the most informed car person in the room.
Deeper reads from our archive
Beer and Plywood Get Hit at Midnight. Cars Are Why There's No Deal. (Aug 18): how the 50% goods duty came to be justified by a vehicle dispute it does not tax.
Canada's Tariff Lands at 15%, Tentatively. One Undecided Rule Halves the Bill. (Aug 20): the content-credit math behind the 15% deal. Talks collapsed the next day and the rate never took effect.
Trump's 50% Canada Tariff Would Tax Toyota and Honda Most of All (Aug 25): which brands build in Canada, and what a 50% rate would cost them if it is ever enacted.
White House Wants 82% Content in USMCA. Canada Wasn't Invited. (Jun 2): the regional content threshold ask, still unresolved.
Three Tariff Clocks, One Cliff: Auto's July Converges on the 24th (Jul 5): the USMCA review and Section 301 timelines that frame everything above.
FAQ
Are there tariffs on cars from Canada? Yes. The default 25% Section 232 tariff, reduced for USMCA-qualifying vehicles to 25% of the non-US-content value. No separate, additional Canada-specific vehicle tariff is in effect.
Are tariffs lower on cars from Germany, Japan or Korea? Yes. Under trade deals implemented in 2025, cars and parts from the EU, Japan and South Korea pay 15% in total instead of the 2.5% base duty plus 25%. UK cars pay 10% for up to 100,000 vehicles a year. Trump announced 25% rates for EU and Korean cars in 2026, but neither has been implemented.
Do tariffs apply to auto parts? Yes. 25% on specified imported parts since May 2025, with USMCA-qualifying parts fully exempt for now. Parts from the EU, Japan, South Korea and Taiwan pay 15%, and parts from the UK 10%.
What is Section 232? The law (Trade Expansion Act of 1962, 19 U.S.C. 1862) the White House used to impose the 25% tariff on imported vehicles and parts, on national-security grounds, effective April and May 2025. The country deals are written as lower rates within the same Section 232 tariff.
Why did Canada get hit with a 50% tariff if cars are exempt? That 50% duty comes from a different law, Section 338 of the Tariff Act of 1930, and covers lists of other Canadian goods such as textiles, cosmetics and, from Oct 30, carpets. The White House imposed it in three proclamations, over Canada's tariff on US-built vehicles, its dairy quotas and its provinces' treatment of US alcohol, but the lists leave out passenger cars, light trucks and auto parts. Since Sept 15, 2026 it does stack on the Section 232 tariff for the few vehicle-type goods it names, such as all-terrain and small off-road vehicles. An importer challenged the duty in court on Oct 20, 2026; no ruling has been issued as of this review.
Is the auto tariff going up to 50% in 2027? Trump announced that possibility on social media in August 2026. As of this review, no proclamation or Federal Register notice implements it, and US-Canada talks on easing the auto tariff resumed in October.
Does Canada tax US-built vehicles? Yes. Since April 2025, Canada has applied a 25% tariff on non-USMCA-qualifying US vehicles, and a 25% tariff on non-North-American content (up to 85% of value) for USMCA-qualifying ones, under its own Surtax Order.
Citing this page. Link to suspension.news/tariffs and quote freely. The "as of" date at the top is the review date to cite. If you spot an error, email us and we will fix it the same day.