Are auto parts subject to tariffs ?
Yes, auto parts are generally subject to tariffs, but the exact amount depends on the country of import, the type of part, and whether trade agreements or exemptions apply.
🔍 In the United States:
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Standard Tariffs: Auto parts imported from countries without a trade agreement may be subject to 2.5% to 25% tariffs, depending on the item and its classification under the Harmonized Tariff Schedule.
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Free Trade Agreements: Imports from countries like Mexico and Canada (under USMCA), or South Korea, may be tariff-free if they meet rules of origin.
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Section 232 and 301 Tariffs: Some parts, especially from China, may face additional tariffs (up to 25%) due to trade actions like Section 301.
🌍 In Other Countries:
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European Union: Typically imposes customs duties on non-EU imports, but offers preferential rates under trade deals.
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Australia: Generally applies a 5% tariff, but this can be reduced or eliminated via FTAs or Tariff Concession Orders.
✅ Exemptions May Apply
Auto parts may be exempt from tariffs if:
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They come from a trade agreement partner and meet rules of origin.
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They qualify for a Tariff Concession Order or similar exemption.
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They're imported for re-export or certain industrial uses.