[Federal Register Volume 90, Number 63 (Thursday, April 3, 2025)]
[Presidential Documents]
[Pages 14705-14714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05930]
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Vol. 90
Thursday,
No. 63
April 3, 2025
Part III
The President
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Proclamation 10908--Adjusting Imports of Automobiles and Automobile
Parts Into the United States
Presidential Documents
Federal Register / Vol. 90 , No. 63 / Thursday, April 3, 2025 /
Presidential Documents
___________________________________________________________________
Title 3--
The President
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Proclamation 10908 of March 26, 2025
Adjusting Imports of Automobiles and Automobile
Parts Into the United States
By the President of the United States of America
A Proclamation
1. On February 17, 2019, the Secretary of Commerce
(Secretary) transmitted to me a report on his
investigation into the effects of imports of passenger
vehicles (sedans, sport utility vehicles, crossover
utility vehicles, minivans, and cargo vans) and light
trucks (collectively, automobiles) and certain
automobile parts (engines and engine parts,
transmissions and powertrain parts, and electrical
components) (collectively, automobile parts) on the
national security of the United States under section
232 of the Trade Expansion Act of 1962, as amended (19
U.S.C. 1862) (section 232). Based on the facts
considered in that investigation, the Secretary found
and advised me of his opinion that automobiles and
certain automobile parts are being imported into the
United States in such quantities and under such
circumstances as to threaten to impair the national
security of the United States.
2. In Proclamation 9888 of May 17, 2019 (Adjusting
Imports of Automobiles and Automobile Parts Into the
United States), I concurred with the Secretary's
finding in the February 17, 2019, report that
automobiles and certain automobile parts are being
imported into the United States in such quantities and
under such circumstances as to threaten to impair the
national security of the United States. I also directed
the United States Trade Representative (Trade
Representative), in consultation with other executive
branch officials, to pursue negotiation of agreements
to address the threatened impairment of the national
security of the United States with respect to imported
automobiles and certain automobile parts from the
European Union, Japan, and any other country the Trade
Representative deems appropriate.
3. The Trade Representative's negotiations did not lead
to any agreements of the type contemplated by section
232.
4. In Proclamation 9888, I also directed the Secretary
to monitor imports of automobiles and certain
automobile parts and inform me of any circumstances
that, in the Secretary's opinion, might indicate the
need for further action under section 232 with respect
to such imports.
5. The Secretary has informed me that, since the
February 17, 2019, report, the national security
concerns remain and have escalated. The COVID-19
pandemic exposed critical vulnerabilities and choke
points in global supply chains, undermining our ability
to maintain a resilient domestic industrial base. In
recent years, American-owned automotive manufacturers
have experienced numerous supply chain challenges,
including material and parts input shortages, labor
shortages and strikes, and electrical-component
shortages. Meanwhile, foreign automotive industries,
propelled by unfair subsidies and aggressive industrial
policies, have grown substantially. Today, only about
half of the vehicles sold in the United States are
manufactured domestically, a decline that jeopardizes
our domestic industrial base and national security, and
the United States' share of worldwide automobile
production has remained stagnant since the February 17,
2019, report. The number of employees in the domestic
automotive industry has also not improved since the
February 17, 2019, report.
[[Page 14706]]
6. I am also advised that agreements entered into
before the issuance of Proclamation 9888, such as the
revisions to the United States-Korea Free Trade
Agreement and the United States-Mexico-Canada Agreement
(USMCA), have not yielded sufficient positive outcomes.
The threat to national security posed by imports of
automobiles and certain automobile parts remains and
has increased. Investments resulting from other
efforts, such as legislation, have also not yielded
sufficient positive outcomes to eliminate the threat to
national security from such imports.
7. After considering the current information newly
provided by the Secretary, among other things, I find
that imports of automobiles and certain automobile
parts continue to threaten to impair the national
security of the United States and deem it necessary and
appropriate to impose tariffs, as defined below, to
adjust imports of automobiles and certain automobile
parts so that such imports will not threaten to impair
national security.
8. To ensure that the imposition of tariffs on
automobiles and certain automobile parts in this
proclamation are not circumvented and that the purpose
of this action to eliminate the threat to the national
security of the United States by imports of automobiles
and certain automobile parts is not undermined, I also
deem it necessary and appropriate to establish
processes to identify and impose tariffs on additional
automobile parts, as further described below.
9. Section 232 provides that, in this situation, the
President shall take such other actions as the
President deems necessary to adjust the imports of the
relevant article so that such imports will not threaten
to impair national security.
10. Section 604 of the Trade Act of 1974, as amended
(19 U.S.C. 2483), authorizes the President to embody in
the Harmonized Tariff Schedule of the United States
(HTSUS) the substance of statutes affecting import
treatment, and actions thereunder, including the
removal, modification, continuance, or imposition of
any rate of duty or other import restriction.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the
United States of America, by the authority vested in me
by the Constitution and the laws of the United States
of America, including section 301 of title 3, United
States Code; section 604 of the Trade Act of 1974, as
amended; and section 232 of the Trade Expansion Act of
1962, as amended, do hereby proclaim as follows:
(1) Except as otherwise provided in this
proclamation, all imports of articles specified in
Annex I to this proclamation or in any subsequent annex
to this proclamation, as set out in a subsequent notice
in the Federal Register, shall be subject to a 25
percent tariff with respect to goods entered for
consumption or withdrawn from warehouse for
consumption, on or after 12:01 a.m. eastern daylight
time on April 3, 2025, for automobiles, and on the date
specified in the Federal Register for automobile parts,
but no later than May 3, 2025, and shall continue in
effect, unless such actions are expressly reduced,
modified, or terminated. The above ad valorem tariff is
in addition to any other duties, fees, exactions, and
charges applicable to such imported automobiles and
certain automobile parts articles.
(2) For automobiles that qualify for preferential
tariff treatment under the USMCA, importers of such
automobiles may submit documentation to the Secretary
identifying the amount of U.S. content in each model
imported into the United States. ``U.S. content''
refers to the value of the automobile attributable to
parts wholly obtained, produced entirely, or
substantially transformed in the United States.
Thereafter, the Secretary may approve imports of such
automobiles to be eligible to apply the ad valorem
tariff of 25 percent in clause (1) of this proclamation
exclusively to the value of the non-U.S. content of the
automobile. The non-U.S. content of the automobile
shall be calculated by subtracting the value of the
U.S. content in an automobile from the total value of
the automobile.
[[Page 14707]]
(3) If U.S. Customs and Border Protection (CBP)
determines that the declared value of non-U.S. content
of an automobile, as described in clause (2) of this
proclamation, is inaccurate due to an overstatement of
U.S. content, the 25 percent tariff shall apply to the
full value of the automobile, regardless of the actual
U.S. content of the automobile. In addition, the 25
percent tariff shall be applied retroactively (from
April 3, 2025, to the date of the inaccurate
overstatement) and prospectively (from the date of the
inaccurate overstatement to the date the importer
corrects the overstatement, as verified by CBP) to the
full value of all automobiles of the same model
imported by the same importer. This clause does not
apply to or otherwise affect any other applicable fees
or penalties.
(4) The ad valorem tariff of 25 percent described
in clause (1) of this proclamation shall not apply to
automobile parts that qualify for preferential
treatment under the USMCA until such time that the
Secretary, in consultation with CBP, establishes a
process to apply the tariff exclusively to the value of
the non-U.S. content of such automobile parts and
publishes notice in the Federal Register.
(5) For avoidance of doubt, clause (4) of this
proclamation does not apply to automobile knock-down
kits or parts compilations. Clause (4) of this
proclamation applies only to individual automobile
parts as defined by Annex I to this proclamation that
otherwise meet the requirements of clause (4) of this
proclamation.
(6) The Secretary, in consultation with the United
States International Trade Commission and CBP, shall
determine the modifications necessary to the HTSUS to
effectuate this proclamation and shall make such
modifications to the HTSUS through notice in the
Federal Register.
(7) Within 90 days of the date of this
proclamation, the Secretary shall establish a process
for including additional automobile parts articles
within the scope of the tariffs described in clause (1)
of this proclamation. In addition to inclusions made by
the Secretary, this process shall provide for including
additional automobile parts articles at the request of
a domestic producer of an automobile or automobile
parts article, or an industry association representing
one or more such producers, where the request
establishes that imports of additional automobile parts
articles have increased in a manner that threatens to
impair the national security or otherwise undermines
the objectives set forth in any proclamation issued on
the basis of the Secretary's February 17, 2019, report
or any additional information submitted to the
President under clause (3) of Proclamation 9888 or
clause (9) of this proclamation. When the Secretary
receives such a request from a domestic producer or
industry association, the Secretary, after consultation
with the United States International Trade Commission
and CBP, shall issue a determination regarding whether
to include the articles within 60 days of receiving the
request. Any additional automobile parts articles that
the Secretary has determined to be included within the
scope of the tariffs described in clause (1) of this
proclamation shall be so included on or after 12:01
a.m. eastern daylight time the day after a notice in
the Federal Register describing the determination of
the Secretary. The notice in the Federal Register shall
be made as soon as practicable but no later than 14
days after the Secretary's determination.
(8) Any automobile or automobile part, except those
eligible for admission under ``domestic status'' as
defined in 19 CFR 146.43, that is subject to the duty
imposed by this proclamation and that is admitted into
a United States foreign trade zone on or after the
effective date of this proclamation, in accordance with
clause (1) of this proclamation, must be admitted as
``privileged foreign status'' as defined in 19 CFR
146.41, and will be subject upon entry for consumption
to any ad valorem rates of duty related to the
classification under the applicable HTSUS subheading.
(9) The Secretary shall continue to monitor imports
of automobiles and automobile parts. The Secretary also
shall, from time to time, in consultation with any
senior executive branch officials the Secretary deems
appropriate,
[[Page 14708]]
review the status of such imports with respect to
national security. The Secretary shall inform the
President of any circumstances that, in the Secretary's
opinion, might indicate the need for further action by
the President under section 232. The Secretary shall
also inform the President of any circumstance that, in
the Secretary's opinion, might indicate that the
increase in duty rate provided for in this proclamation
is no longer necessary.
(10) No drawback shall be available with respect to
the duties imposed pursuant to this proclamation.
(11) The Secretary may issue regulations and
guidance consistent with this proclamation, including
to address operational necessity.
(12) CBP may take any necessary or appropriate
measures to administer the tariffs imposed by this
proclamation.
(13) Any provision of previous proclamations and
Executive Orders that is inconsistent with the actions
taken in this proclamation is superseded to the extent
of such inconsistency.
IN WITNESS WHEREOF, I have hereunto set my hand
this twenty-sixth day of March, in the year of our Lord
two thousand twenty-five, and of the Independence of
the United States of America the two hundred and forty-
ninth.
(Presidential Sig.)
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[FR Doc. 2025-05930
Filed 4-2-25; 2:00 pm]
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