Automakers gained insight on how to mitigate U.S. tariffs on car and part imports after the Department of Commerce issued guidance on assessing non-U.S. vehicle content. This is crucial for understanding potential offsets against the 25% tariff imposed on non-U.S. components under the U.S.-Mexico-Canada Agreement. The guidelines indicate that importers must submit detailed documentation about U.S. content in vehicles to qualify for reduced tariffs. Each submission will be reviewed for compliance, and approvals are valid for six months, requiring timely updates to maintain eligibility.

Source: https://www.supplychaindive.com/news/commerce-automakers-supply-chain-data-usmca-tariff-evaluations/748662/