Overview

• President Donald Trump’s 25% tariff on imported auto parts, including engines and transmissions, officially came into force on May 4, 2025.
• Automakers face financial strain, with General Motors projecting £3.7 billion in additional costs this year, including £1.5 billion from South Korean exports to the U.S.
• Relief measures allow offsets of up to 3.75% on U.S.-assembled vehicles in the first year, with exemptions for parts sourced from Canada and Mexico under USMCA rules.
• General Motors has increased truck production in Fort Wayne, Indiana, while scaling back operations in Canada to adapt to the tariff regime.
• Chinese-made auto parts remain subject to a combined tariff of at least 145%, intensifying global trade tensions and supply chain challenges.