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Proc 10925ProclamationTrump 47 · R Quiet signal

Proclamation 10925

Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States

This proclamation modifies the Section 232 tariff system on automobiles and automobile parts established in Proclamation 10908. It creates a two-year import adjustment offset program that reduces duties on automobile parts for manufacturers that assemble vehicles in the United States, with offsets equal to 3.75% of aggregate MSRP value for year one (April 3, 2025–April 30, 2026) and 2.5% for year two (May 1, 2026–April 30, 2027). The Secretary of Commerce must establish an application process within 30 days, and CBP will administer the offsets.

Federal Register Open PDF 90 FR 18899

Impact dates

  1. End of year-one offset period (3.75% of aggregate MSRP)

  2. Secretary must establish manufacturer application process for import adjustment offsets

  3. Automobile parts tariffs take effect under Proclamation 10908

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

AutosSteel & aluminumSemiconductorsOther industrial

Mechanisms

TariffSubsidy / incentive

Role pressure

  • ProtectiveDomestic producer — Offset program directly rewards U.S. vehicle assembly with reduced effective parts tariffs, incentivizing domestic production expansion and supply chain localization
  • MixedImporter — Importers of record for manufacturers with U.S. assembly gain offset protection; importers without U.S. assembly face full 25% parts tariffs with no relief
  • MixedDownstream manufacturer — Auto parts suppliers in U.S. assembly supply chains may benefit from continued import flows via offsets; foreign-only suppliers face tariff barriers
  • AdverseTrading-partner exporter — Countries exporting auto parts to U.S. face demand reduction as offsets favor domestic assembly and localized sourcing

Geographies

USMXCAJPKREUCN

Exposure dates

  • — Automobile parts tariffs take effect under Proclamation 10908
  • — Secretary must establish manufacturer application process for import adjustment offsets
  • — End of year-one offset period (3.75% of aggregate MSRP)

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MAAAlcoaAAPLAppleAVGOBroadcomCATCaterpillarCENXCentury AluminumCLFCleveland-CliffsFFordFCXFreeport-McMoRanGEVGE VernovaGMGeneral MotorsHONHoneywellHYMTFHyundai MotorINTCIntelQQQInvesco QQQ TrustMUMicron TechnologyNUENucorNVDANVIDIASPYSPDR S&P 500 ETFSTLAStellantisTSLATeslaTMToyotaTSMTSMCXUnited States Steel

Confidence: high · Policy alerts

Key directives

  • Establish application process for import adjustment offsets within 30 days (by May 29, 2025)
  • CBP to administer offset amounts to approved importers of record
  • Secretary to issue regulations/guidance with Treasury and CBP Commissioner
  • Secretary with USITC and CBP to determine HTSUS modifications via Federal Register notice
  • Secretary to continue monitoring imports and report to President on need for further action

Who is ordered

Timeline

Immediate

  • Tariffs on automobiles already in effect since April 3, 2025
  • Secretary of Commerce must establish manufacturer application process within 30 days of April 29, 2025
  • CBP to begin providing offsets as soon as practicable

Near term (90d)

  • Auto parts tariffs take effect May 3, 2025
  • Manufacturer applications for offset amounts due under process established by Secretary

Long term

  • Year-one offset period: April 3, 2025–April 30, 2026 (3.75% of aggregate MSRP)
  • Year-two offset period: May 1, 2026–April 30, 2027 (2.5% of aggregate MSRP)
  • Ongoing monitoring by Secretary of Commerce for further Section 232 action

Risks & tensions

  • Offset structure may favor larger manufacturers with established U.S. assembly footprint over smaller importers
  • Complex certification and importer-of-record tracking creates administrative burden and compliance risk
  • Cap on offsets at manufacturer's actual parts tariff liability may limit relief for some
  • Potential WTO disputes over national security justification and discriminatory treatment
  • Unclear how 'U.S. content' standards will be defined in forthcoming regulations
  • Supersession clause and reference to April 29, 2025 EO on tariffs creates interaction uncertainty with other trade actions
Proclamation 10925: Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States · Executive Orders