President Trump's August 1 deadline for new deals with international trade partners has come and gone. Here's where things stand, with analysis of the impact on the automotive aftermarket and motorsports industries.

• The White House issued a July 31 Executive Order expanding tariffs on a broad range of foreign goods, including automotive components central to the motorsports industry.  
   
• While several notable trading partners—most notably the European Union (EU), Japan, South Korea, Indonesia and the Philippines—have recently secured trade deals with the U.S. that lock in lower tariff rates, many other countries now face increases in duties effective August 7 that are likely to affect supply chains and pricing.  
   
• The new tariff rates apply to goods entered for consumption or withdrawn from a warehouse for consumption on or after August 7, at 12:01 a.m. (EDT), unless the product is in its final mode of transit before that date and is withdrawn for consumption before October 5. 
   

The White House issued a separate Executive Order that increases the International Emergency Economic Powers Act (IEEPA) fentanyl tariff on Canadian exports noted covered by USMCA from 25% to 35% (effective on August 1). The order also adds a 40% additional tariff for goods that U.S. Customs and Border Protection (CBP) determines have been transshipped to another country to evade tariffs.  

Below is a list of countries subject to recent tariff rate changes. 

^{*Subject to a separate IEEPA tariff.
**Additional 40% IEEPA tariff.
***Effective August 1.
****No tariff added if the U.S. tariff rate is over 15%; anything under 15% is raised to 15%.}

Copper Tariff Increase 

The U.S.  imposed a 50% tariff on "all imports of semi-finished copper products and intensive copper derivative products," effective 12:01 a.m. Eastern on August 1.  

• Click here for CBP's list of the tariff codes subject to the 50% Section 232 tariff on copper. The list is at the bottom of the page in a Word document titled "CopperHTSlist073125." 
   

U.S. Appeals Court Reviews IEEPA Tariffs

Legal questions surrounding the administration's authority to impose IEEPA tariffs continue to develop. The U.S. Court of Appeals for the Federal Circuit heard oral arguments on July 31 in the case where judges questioned the federal government's use of IEEPA.  

• It's unclear when the court will issue a decision, although it's anticipated that the U.S. Supreme Court will make the final decision on IEEPA. The contested tariffs remain in force pending appeal. Any decision to invalidate them could force a realignment of customs penalties or trigger refund obligations, particularly if parts were misclassified or duties were improperly layered. 
   

Questions? Contact Juan Mejia, PRI and SEMA's senior manager for federal government affairs, at jmejia@sema.org.  

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