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Rows of new cars awaiting export at the Kaiserhafen car terminal in Bremerhaven, Germany

New cars awaiting export at Bremerhaven, Germany, 2024. Photo: Dietmar Rabich / Wikimedia Commons, CC BY-SA 4.0.

The short answer, as of October 1, 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 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 2026

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 ran through August and September 2026 is a separate measure on other goods, and it 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.

  • October 2026. Commerce's parts process provides a window each January, April, July and October for manufacturers to ask that more part categories be added to the 25% parts tariff. No notice for the October window had been published as of this review. A window can widen the list of taxed parts; it cannot change the rate. Federal Register, Sept 17, 2025

  • Date unset. US-Mexico talks on autos, steel and aluminum. Mexican officials told Automotive News on Sept 30, 2026 that negotiators are working to cut the US tariff on Mexican light vehicles from 25% to 15%; a round scheduled for that week was postponed and 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.

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 vehicles or parts; the rate cuts that did happen came from the 2025 trade deals at the bottom of this list.

  • 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 duty on roughly 554 categories of other Canadian goods (paper, cement, plywood, furniture, cosmetics, textiles, jewelry, toys) 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. The 15% rate never took effect and the 25% rate kept applying throughout.

  • Aug 18, 2026. No change to the car tariff. The White House suspended the 50% goods duty 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. The White House imposed the original 50% duty on the Canadian goods list, citing Canada's own 25% tariff on US-built vehicles as the discrimination it offsets. The proclamation's text exempts anything already taxed under the Section 232 auto tariff, which is why vehicles and parts are absent from the list. Proclamation 11048

  • May 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. 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, now extended through April 30, 2030. Federal Register, 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 some small off-road vehicles and motorcycles but no passenger cars, light trucks or auto parts. CSMS #69851916

  • Other 2026 tariffs exempt cars and parts. The temporary 10% Section 122 surcharge (Feb 24 to late July 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.

  • 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. 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. 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 action on this page.

  • 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 and the September import ban, taxes paper, cement, textiles and similar goods. 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 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

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 a list of other Canadian goods such as paper, cement and textiles. The White House imposed it because Canada taxes US-built vehicles, but the list itself leaves 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.

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.

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.

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