Tariffs continue to dominate the headlines, and it's tricky to sort out the latest news and what it means to the racing industry. Here's the latest, as of June 3, 2025: 

Steel and Aluminum Are Scheduled to Double

President Donald Trump announced on May 30 that the United States will double tariffs on imported steel and aluminum from 25% to 50%, effective June 4. The latest headline with implications for the automotive sector comes as businesses navigate the effect of tariffs on global and domestic supply chains, particularly for critical parts, components and raw materials.

The United States imported more than $31 billion worth of iron and steel last year, with much of it sourced from Canada. Because the steel and aluminum tariffs apply to derivative products, vehicles could be impacted, even if assembled in the United States, if they contain imported steel and aluminum components. 

Federal Courts Throw Global Reciprocal Tariffs Into Flux

The U.S. Court of International Trade (CIT) unanimously ruled on May 28 that the tariffs President Trump imposed under the International Emergency Economic Powers Act (IEEPA) are unlawful and exceed IEEPA's authority. The following day, a D.C. district court judge also ruled that the tariffs aren't legal, although he paused his order for 14 days to allow time for appeal. Following the CIT ruling, the federal appeals court granted the U.S. Department of Justice's stay request, which means the IEEPA tariffs can still be collected while the appeal is pending. The appeals court has expedited its proceedings on the IEEPA tariffs, requesting that the plaintiffs provide their brief by June 5 and the Trump administration respond by June 9.  

The rulings apply to the following IEEPA tariff actions: 

Fentanyl-related tariffs: ​​​​​​

• Canada (EO 14193) and Mexico (EO 14194): 25% tariff for goods that do not claim or qualify for USMCA duty-free preference, and a 10% tariff for energy and potash imports that do not claim or qualify for USMCA duty-free preference. 
   
• China (EO 14195): 20% tariff for all goods from China. 
   

Reciprocal tariffs:  

• Applied to all countries (except Canada and Mexico) (EO 14257): The country-by-country tariff rate is currently 10% with duties imposed on most products (there are exceptions for goods subject to Section 232 tariffs and other goods listed in Annex II of E.O. 14257).  
   
• President Trump has given countries until July 9 to negotiate trade deals with the United States, threatening to increase tariffs on each country equal to those imposed on U.S. exports.  

The CIT and D.C. District Court rulings do not affect the following tariffs: 

• Section 301 tariffs imposed on China, which were reduced from 125% to 10% on May 12 (this temporary reduction in tariffs on China expires on August 12); and 
   
• Section 232 tariffs on automobiles, auto parts, steel, and aluminum. 

Date We're Watching: July 9 for European Union (EU) Tariffs

The United States has threatened the EU with tariffs of up to 50%. EU countries are currently subject to the 10% IEEPA tariff. The Trump Administration is targeting the trade imbalance between the United States and its European counterparts, which surpassed $235 billion in 2024. A 50% tariff on EU imports is estimated to impact $606 billion in imported products, including auto parts.  

The Motorsports Industry's Best Resource for Tariff News: PRI and SEMA

While President Trump's tariffs on imported products, materials and components are having a significant impact on most sectors of the United States and world economies, the speed and volume in which they have been imposed and subsequent changes have made it challenging for everyone from small businesses to corporations to Washington insiders to fully understand the impact of tariffs on imports. PRI's got your back and will continue to update members on this evolving issue.

For additional information, visit sema.org/advocacy/tariffs or contact Eric Snyder, SEMA and PRI's senior director for federal government affairs, at erics@sema.org.