The Tariff Landscape for Automotive Sectors
Automotive faces the most complex duty structure in U.S. trade
— 25% Section 232 tariffs on steel and aluminum inputs, 25% Section 301 duties on Chinese vehicles, plus varying MFN rates and EV-specific classifications for batteries and charging equipment. The complexity creates massive recovery opportunities most companies miss.
Tier suppliers often qualify for manufacturing drawback when parts end up in exported vehicles. USMA preferences go unclaimed due to documentation gaps. HTS misclassification between engine and transmission components costs millions in unnecessary duties. Section 232 exclusions remain available for specialized steel grades, and IEEPA refunds are possible under the CAPE system. The deadlines matter - PSCs before liquidation, protests within 180 days after, drawback within five years. In automotive, those windows determine whether millions stay with CBP or return to your balance sheet.



