As many of you have already seen, the Trump administration has announced a sweeping new tariff plan targeting automotive imports, including a proposed 32% tariff on imports from Taiwan and a 34% tariff on products sourced from China, effective April 9, 2025. This action is part of a broader trade policy strategy that introduces a baseline minimum tariff on all imports, with significantly higher rates targeting countries with substantial trade surpluses with the United States. A full list of the tariff rates by country can be found here.
These tariffs are poised to have far-reaching effects on our industry and ABPA members. The new policy not only impacts finished vehicles but also automobile parts, with additional duties of 25% on a comprehensive list of components effective May 3, 2025, as outlined in Annex I of the Federal Register Notice (2025-05930). These costs will ultimately trickle down to repair shops and vehicle owners, driving up repair costs and potentially increasing the total loss rate for vehicles.
ABPA Action Plan
In response, the ABPA is proactively working on multiple fronts:
🔹 Ongoing Member Education
We will continue to provide timely updates and practical information to help our members navigate these significant changes. As implementation dates near, understanding your supply chain exposure and customs classifications is more critical than ever.
🔹 Advocacy and Collaboration
We are actively seeking partnerships with industry allies to collectively advocate against the harmful impact these tariffs could have on American businesses and consumers. In addition, the ABPA will be directly reaching out the US Department of Commerce and Secretary Howard Lutnick on behalf of membership.
What You Can Do Now
- Review your product classifications: Cross-reference your imported parts with the HTSUS codes listed on pages 11-12 of Annex I in the Federal Register notice.
- Contact your suppliers, forwarders, and brokers: Confirm and verify your classifications as well as any additional guidance they may be able to provide.
- Engage with the ABPA: Your input is vital. If you have feedback, concerns, or specific impacts to share, please reach out to me directly.
The ABPA is committed to standing with our members and fighting to preserve a fair and competitive aftermarket industry. We will continue to speak out against policies that harm our members’ businesses and limit consumer choice.
Stay tuned for additional updates and thank you for your continued engagement.
Edward Salamy
Executive Director, Automotive Body Parts Association (ABPA)
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