Canadian, Mexican auto parts get Trump tariff exemption under CUSMA

U.S. Customs and Border Protection guidance released on Thursday said automobile parts compliant with the Canada-U.S.-Mexico Agreement on trade will not be subject to U.S. President Donald Trump's tariffs, which are set to begin on Saturday.

Trump imposed a 25 percent tariff on all vehicle imports to the United States last month but made an exemption for American-made parts of cars that comply with the continental trade pact, also known as CUSMA.

However, all other parts, as well as non-U.S. parts in passenger vehicles completed outside the U.S., will still be subject to a 25 percent tariff starting at 12:01 a.m. on May 3, according to the guidance.

(Cover: A roll of sheet aluminum at an auto parts manufacturing facility in San Luis Potosi, Mexico, February 17, 2025. /VCG)