[Federal Register Volume 90, Number 84 (Friday, May 2, 2025)]
[Presidential Documents]
[Pages 18899-18903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-07833]
[[Page 18897]]
Vol. 90
Friday,
No. 84
May 2, 2025
Part II
The President
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Proclamation 10925--Amendments to Adjusting Imports of Automobiles and
Automobile Parts Into the United States
Proclamation 10926--418th Anniversary of the First Landing and the
Raising of the Cape Henry Cross
Executive Order 14289--Addressing Certain Tariffs on Imported Articles
Presidential Documents
Federal Register / Vol. 90 , No. 84 / Friday, May 2, 2025 /
Presidential Documents
___________________________________________________________________
Title 3--
The President
[[Page 18899]]
Proclamation 10925 of April 29, 2025
Amendments to 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 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 certain
countries. The Trade Representative's negotiations did
not lead to any agreements of the type contemplated by
section 232. 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.
3. In Proclamation 10908 of March 26, 2025 (Adjusting
Imports of Automobiles and Automobile Parts Into the
United States), I found, based on information newly
provided by the Secretary, that imports of automobiles
and certain automobile parts continued to threaten to
impair the national security of the United States and
deemed it necessary and appropriate to impose a tariff
system to adjust imports of automobiles and certain
automobile parts so that such imports will not threaten
to impair national security. The tariffs on automobiles
have been in effect since 12:01 a.m. eastern daylight
time on April 3, 2025; the tariffs on automobile parts
are set to go into effect on or after 12:01 a.m.
eastern daylight time on May 3, 2025.
4. In Proclamation 10908, I also deemed it necessary
and appropriate to establish processes to identify and
impose tariffs on additional automobile parts to ensure
that the tariffs on automobiles and certain automobile
parts 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
[[Page 18900]]
and certain automobile parts is not undermined. I
directed the Secretary to set up such a process within
90 days of the date of Proclamation 10908.
5. In Proclamation 10908, I also directed the Secretary
to continue to monitor imports of automobiles and
automobile parts, to review the status of such imports
with respect to national security, and to inform me of
any circumstances that, in the Secretary's opinion,
might indicate the need for further action by the
President under section 232. The Secretary has advised
me that additional action is warranted in the interest
of meeting the national security objectives outlined in
Proclamation 10908.
6. In my judgment, it is necessary and appropriate to
modify the system of monetary fees and related measures
imposed to adjust imports of automobiles and certain
automobile parts pursuant to Proclamation 10908 to more
effectively eliminate the threat imports of automobiles
and certain automobile parts pose on the national
security of the United States.
7. I determine that the modified system, by linking the
ultimate monetary fee imposed on imports of automobile
parts to the imports' use in assembly of automobiles
within the United States, in the way and on the
timeline described below, will adjust imports of
automobiles and automobile parts and more effectively
eliminate such imports' threat to impair national
security. I find that the modified system will more
effectively eliminate the national security threat
because it will more quickly reduce reliance on foreign
manufacturing and importation of automobiles and
automobile parts; strengthen United States vehicle
assembly operations by encouraging companies to expand
domestic production capacity, which is critical to a
strong domestic defense industrial base; shift
manufacturing activity into the United States; increase
domestic automotive research and development so that
American-owned producers can produce cutting-edge
technologies that are essential to the United States
defense industrial base and our military superiority;
create jobs in the automotive industry that increase
the number of employees in the domestic automotive
industry; and ensure that other benefits of production
are concentrated in the United States.
8. Section 232 authorizes the President to adjust the
imports of an article and its derivatives that are
being imported into the United States in such
quantities or under such circumstances as to threaten
to impair the national security of the United States so
that such imports will not threaten to impair national
security.
9. 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) To more effectively eliminate the threat to impair
national security posed by imports of automobiles and
automobile parts, I find that it is necessary to modify
the system imposed in Proclamation 10908 by reducing
duties assessed on automobile parts accounting for 15
percent of the value of an automobile assembled in the
United States for 1 year and equivalent to 10 percent
of that value for an additional year as follows:
(a) For automobiles assembled in the United States,
automobile manufacturers shall be eligible to receive
an import adjustment offset amount applicable to
section 232 duties on automobile parts based on the
following schedule:
[[Page 18901]]
(i) The automobile manufacturer may apply for an import adjustment offset
amount equal to 3.75 percent of the aggregate Manufacturer's Suggested
Retail Price (MSRP) value of all automobiles assembled in the United States
from April 3, 2025, through April 30, 2026.
(ii) The automobile manufacturer may apply for an import adjustment offset
amount equal to 2.5 percent of the aggregate MSRP value of all automobiles
assembled in the United States from May 1, 2026, through April 30, 2027.
(b) The percentage rate provided in subsection (i)
reflects the total duty that would be owed when a 25
percent duty is applied to parts accounting for 15
percent of an automobile's MSRP value. The percentage
rate provided in subsection (ii) reflects the total
duty that would be owed when a 25 percent duty is
applied to parts accounting for 10 percent of an
automobile's MSRP value.
(c) Only automobiles that undergo final assembly in
the United States are eligible to be included in this
calculation. The manufacturer's import adjustment
offset amount may only be used by importers of record
authorized by that manufacturer, and the amount may
only be used to offset tariff liability related to that
manufacturer's automobile parts tariff liability under
Proclamation 10908. Should a manufacturer's import
adjustment offset amount exceed the total amount
attributable to that manufacturer's automobile parts
tariff liability under Proclamation 10908, the relief
is capped at the total amount of that manufacturer's
automobile parts tariff liability under Proclamation
10908, and the manufacturer may not use the additional
amount above that cap to offset any other tariff
liability. A manufacturer with an approved import
adjustment offset amount may determine the importers of
record eligible to decrement against that
manufacturer's import adjustment offset amount, and
that list of importers of record may include suppliers
in that manufacturer's supply chain for automobiles
assembled in the United States if the manufacturer so
chooses.
(2) (a) Within 30 days of the date of this order, the
Secretary shall establish a process by which
manufacturers seeking an import adjustment offset
amount shall submit to the Secretary:
(i) documentation certifying the number of automobiles the manufacturer
projects it will assemble in the United States, as well as a list of all
plant locations where the projected automobiles will undergo final
production;
(ii) documentation certifying the manufacturer's projected cost of tariffs
due to imported automobile parts subject to Proclamation 10908, broken down
by tariff costs the manufacturer will incur directly and tariff costs the
manufacturer will incur from its suppliers;
(iii) documentation detailing the total import adjustment offset amount
requested within the schedule determined by the Secretary in accordance
with this proclamation;
(iv) documentation identifying the importer(s) of record, including
importer of record numbers, eligible to use that manufacturer's import
adjustment offset amount, as well as the amount of the manufacturer's
offset amount allotted to each importer of record; and
(v) a certification, signed by a senior officer of the manufacturer,
attesting under penalty of perjury that the information submitted under
subsections (i) through (iv) is true, complete, and accurate to the best of
the manufacturer's knowledge, and that the manufacturer has conducted
reasonable due diligence to verify the accuracy of the assertions and facts
contained in its submissions.
(b) Upon verification of the completeness and
accuracy of a manufacturer's submission and the
manufacturer's eligibility, the Secretary shall approve
the application and notify U.S. Customs and Border
Protection (CBP) with
[[Page 18902]]
the information necessary for CBP to administer and
implement the manufacturer's import adjustment offset
amount, including importer of record number(s) for the
importer(s) eligible to use each offset amount and the
approved import adjustment offset amount. CBP shall
confer the approved offset amount to the approved
importer(s) of record using processes and mechanisms
consistent with CBP's operational framework and tariff
administration procedures, including offset against
current tariff obligations due at the time of entry, or
other lawful methods.
(3) The Secretary, in consultation with the Secretary
of the Treasury and the Commissioner of CBP, shall
issue such regulations, guidance, and procedures as
necessary to carry out the provisions of this
proclamation and Proclamation 10908, and may establish
standards for determining United States content and for
validating manufacturer certifications.
(4) The Secretary, in consultation with the United
States International Trade Commission and CBP, shall
determine whether modifications to the HTSUS are
necessary to effectuate this proclamation and may make
such modifications through notice in the Federal
Register if needed.
(5) CBP shall begin providing approved importers with
an import adjustment offset amount as soon as
practicable and may request information from importers
of record as necessary to implement a particular
manufacturer's import adjustment offset amount.
(6) Should an importer claim and receive any import
adjustment offset amount from CBP in excess of the
amount approved by the Secretary, CBP may assess
monetary penalties in the maximum amount permitted by
law.
(7) 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, 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 duty rate provided for in
Proclamation 10908, or any proclamation issued pursuant
thereto, is no longer necessary.
(8) 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. This proclamation shall apply in
accordance with the Executive Order of April 29, 2025
(Addressing Certain Tariffs on Imported Articles).
[[Page 18903]]
IN WITNESS WHEREOF, I have hereunto set my hand this
twenty-ninth day of April, 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.)
[FR Doc. 2025-07833
Filed 5-1-25; 11:15 am]
Billing code 3395-F4-P