Car parts at risk of double levy
US extends 50% steel and aluminium tariffs, driving auto supply chain risk
The US administration has extended the scope of 50% import tariffs for steel and aluminium goods, adding more than 400 additional items to the levy.
The expanded scope now includes car parts such as chassis components, axles, steel wiring, brackets and mounts, and parts of heavy vehicles. This means these products, which are not listed under the car parts tariff of 25% to 27.5%, will be taxed at a higher rate of 50%. OEMs will need to review codes carefully to determine which parts will be tariffed at which rate.
The new scope also targets product codes for derivatives and products made from the materials, including the likes of paints and sprays, which are often used in the automotive supply chain, and stamped components. As well as this, truck trailers have been added to the list, further complicating automotive logistics. According to the US Department of Commerce, the non-steel and non-aluminium content of the goods will also be taxed according to the country of origin’s regional tariff rate.
Changes in tariffs on steel and aluminium
| Tariff type and coverage | Notes |
| 25% tariff on auto parts (27.5% for non-USMCA compliance) | Effective May 3, 2025; covers engines, transmissions, batteries, etc. |
| 25% tariffs on steel and aluminium imports | Effective March 12, 2025 |
| Tariffs on steel and aluminium raised to 50% | Effective June 4, 2025, with the exception of the UK, which remains at 25% |
| 50% tariff on steel/aluminium derivatives | Effective August 18, 2025; applies to specific codes including auto-related components (e.g., 8708.99.81) |
Any delays on these goods or cost increases could directly impact the automotive supply chain, disrupting production and in the worst-case scenario, even shutting down lines or entire plants and delaying deliveries. Carmakers will likely have to rework sourcing strategies, while suppliers will find it increasingly difficult to remain competitive.
We will update this story as more information becomes available...
