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U.S. Reviews Potential New National Security Tariffs on Auto Parts

U.S. Reviews Potential New National Security Tariffs on Auto Parts

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U.S. Reviews Potential New National Security Tariffs on Auto Parts

by Daisy Mae D.
09/17/2025
in Tariffs & Duties

WASHINGTON, Sept. 17 – The U.S. Commerce Department announced Tuesday that it will review requests from industry stakeholders to impose tariffs on additional imported auto parts on national security grounds. The review comes amid ongoing adjustments to existing trade policies affecting the automotive and manufacturing sectors.

In May, the Trump administration imposed a 25% tariff on more than $460 billion worth of imported vehicles and auto parts annually. Since then, the U.S. has negotiated agreements with some countries to reduce or adjust the scope of those tariffs. According to the Commerce Department, domestic automakers, auto parts producers, and related industry associations will now be able to submit requests for tariffs on additional categories of auto parts deemed critical to national security.

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The department explained that the automotive sector is undergoing rapid technological transformation. This includes advancements in alternative propulsion systems, autonomous vehicle technology, and other emerging innovations that are increasingly linked to defense and security applications. By opening the door for tariff requests on newly developed components, the government said it aims to ensure that critical technologies and supply chains remain safeguarded.

The Commerce Department emphasized that such measures are designed to allow the industry to highlight “new and emerging automotive products with importance for defense applications,” signaling a focus not only on traditional vehicle manufacturing but also on high-tech and electric vehicle-related components.

This development follows an announcement last month in which the department raised tariffs on steel and aluminum imports covering more than 400 categories of products. Those products represent about $240 billion in annual imports and include key auto-related items such as exhaust systems, electrical steel for electric vehicles, and components used in bus manufacturing.

However, the possibility of expanded tariffs has sparked pushback from business and trade groups. On Tuesday, the U.S. Chamber of Commerce, alongside industry associations representing both American and foreign automakers and auto parts manufacturers, urged the Commerce Department to exercise caution. In a letter, the groups called for an end to what they described as “unpredictable expansions” of tariffs, arguing that such moves create unnecessary costs, complexity, and uncertainty across the industry.

The letter noted that the most recent tariff increases were implemented without sufficient notice, leaving companies struggling to adjust their supply chains and pricing models. Industry leaders say this lack of predictability risks disrupting investment plans and could have downstream effects on both production and consumers.

Analysts point out that the decision-making process surrounding tariffs has become a balancing act between economic protection, domestic manufacturing priorities, and the competitiveness of U.S. companies in the global marketplace. For automakers, in particular, the stakes are high, as their supply chains are deeply integrated across international markets.

Observers will be watching closely in the coming weeks to see whether the Commerce Department grants new tariff requests and how the administration navigates the growing tension between industry calls for stability and the government’s desire to strengthen its trade and national security posture.

#AutoIndustryNews #TradePolicy #TariffsAndDuties #EconomicUpdate #SupplyChainNews

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