There was much anxiety from the classic car community following the announcement of US President Donald Trump’s sweeping 25% tariffs last week, which will see an additional import tax on all non-domestic cars and parts sold into the USA. While the wording of the announcement initially suggested that the tariffs would apply to classic and historic vehicles being imported into the USA, further documentation released today has confirmed that classic cars – those over 25 years old – will be exempt from the tariffs.
Coming into effect from 2 April, the tariffs are designed to target the new car manufacturing industry. Trump says that the automotive tariffs will bolster American manufacturing and generate approximately $100 billion in annual revenue, but economists suggest that the additional costs will simply be passed on to consumers and damage sales.
Much to the relief of the industry, the executive order issued by the White House on 2 April stated: ‘On or after April 3, 2025, vehicles that are at least 25 years old at the time of entry will be fully exempt from the 25% tariff on imported passenger vehicles and light trucks, under heading 9903.94.04, regardless of origin, make, or model.’
Currently, any person or company importing any vehicle into America will be charged a flat 2.5% duty by the US Customs and Border Protection agency, whether it’s a new, used or historic vehicle.
The potential impact of this blanket 25% tariff on UK businesses could be drastic. UK’s Historic & Classic Vehicles Alliance (HCVA) issued a statement, with its CEO Dale Keller telling Octane: ‘Historic vehicles and parts are by nature already built, classified and valued and there is no ability to recreate them in the USA. Applying a tariff on these vehicles and parts is therefore an unintended consequence of policy intended for a totally different set of objectives.’
Although the tariffs will not impact classic cars imports, it’s thought that they will still apply to parts, which could potentially impact USA classic car owners and collectors, who depend on imports for many parts which are no longer manufactured locally. Hard-to-source components are often produced overseas in small batches by niche suppliers, which if subjected to a 25% duty could drive up costs considerably. Tariffs on parts are scheduled to come into force in May 2025, unless things change.
The situation is still developing, but we should also be prepared to expect retaliatory tariffs from the EU, Canada, Mexico and China among others. Expect further updates as this story develops.
