The U.S. Department of Commerce has issued guidance for automakers on how to calculate non-U.S. content in vehicles, which is crucial for qualifying for reduced tariffs amidst significant costs projected to rise by nearly $108 billion by 2025. The 25% tariff on car imports will apply only to non-U.S. content, calculated by subtracting U.S. content from the total vehicle value. Automakers must provide detailed documentation, including U.S. content values and vehicle manufacturing information, to the Commerce Secretary to qualify for preferential tariff treatment, with approvals valid for six months.

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