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As a part of its new trade policy, U.S. President Donald Trump’s administration has expanded its 25% tariff on autos to cover nearly $600 billion worth of vehicles and auto parts annually. But what’s more surprising element of this new policy is the inclusion of computers and laptops under this sweeping policy.

 

 

A Broader Scope Than Expected

According to a recent analysis by Reuters, the federal register notice published on Wednesday reveals that new tariff’s will be even applicable on items which were earlier exempted from tariff or came under low category of tarffis. The update to last week’s proclamation includes nearly 150 auto parts categories that will now face the excessive 25% tariff beginning May 3. The list of these items include engines, transmissions, and lithium-ion batteries to more modest components like brake hoses, tires, spark plug wires, and shock absorbers.

 

Coming to the surprising element of this policy is the inclusion of a four-digit tariff code that will be applicable on all computer imports, including laptops. The data revealed by the U.S. Census Bureau data shows $138.5 billion worth of computers imported in 2024 alone, this step can broadly impact industries and customers equally. 

 

Layered Tariff Structure: But No Doubling Up

The Trump administration has also announced a baseline 10% tariff on all U.S. imports, taking effect April 5. Some nations could face even higher reciprocal duties, designed to offset non-tariff trade barriers imposed by other countries. However, administration officials have clarified that the auto and auto parts tariffs under Section 232 will not stack with the new baseline or reciprocal tariffs. In simpler terms, products already facing the 25% national security-related duty won’t be hit again with the additional 10% or more under the new system.

 

Room for More Additions

The White House has directed the Commerce Department to create a review process within 90 days, allowing domestic manufacturers to request the inclusion of additional imported parts under the tariff list. This means the scope of the policy could grow even further in the near future.

 

A Break for USMCA-Compliant Imports

For vehicles that meet the U.S.-Mexico-Canada Agreement (USMCA) rules of origin, importers will be required to pay the 25% duty only on the non-U.S. content of the vehicle. This provides a partial reprieve for North American trade partners and offers some clarity amid the uncertainty.