On April 29, President Trump issued an Executive Order offering important relief to automakers assembling vehicles in the United States. The order helps prevent overlapping tariffs on imported auto parts, which were set to take effect at 12:01 a.m. ET on May 3.
Under the new directive, auto parts already subject to Section 232 auto tariffs will be exempt from additional duties under the Section 232 steel and aluminum tariffs, as well as from IEEPA fentanyl-related tariffs on goods from Canada or Mexico.
Steel and aluminum products covered under Section 232 will no longer face IEEPA fentanyl tariffs when sourced from Canada or Mexico, although they will remain subject to the original Section 232 steel and aluminum duties.
The Executive Order also directs the implementation of the tariff framework outlined in the accompanying April 29 proclamation.