Auto Tariffs May Impact Marine Parts, NMMA Urges Industry Review Ahead of May 3 Deadline
On April 3, President Donald Trump imposed Section 232 tariffs on imported automobiles, while tariffs on auto parts are set to take effect May 3. Several Harmonized Tariff Schedule (HTS) codes for auto parts may overlap with imported marine parts. NMMA encourages members to review the HTS codes listed for auto parts here.
Tariff Rate and Timing:
- A 25% tariff applied to imported automobiles is effective April 3.
- The same 25% tariff will apply to auto parts effective no later than May 3.
- These tariffs are in addition to any other applicable duties.
- Duty drawback is not allowed for affected products.
USMCA-Qualified Vehicles and Parts:
- Automakers may reduce their tariff liability by documenting the percentage of U.S. content in a vehicle under the United States-Mexico-Canada Agreement (USMCA).
- U.S. content is defined as components “wholly obtained, produced entirely, or substantially transformed” in the U.S.
- Auto parts that qualify under USMCA are temporarily exempt from tariffs until a formal process is created to evaluate non-U.S. content.
Resources
Next Steps
NMMA will continue monitoring developments and advocating for a nuanced approach to tariffs that keep the uniquely American recreational boating industry competitive at home and abroad.
Members with questions or concerns related to specific product categories, sourcing, or customs compliance are encouraged to contact Clay Crabtree, NMMA Senior Director of Public Policy, at [email protected].