Senator: Flexibility in Auto Tariff Offset Contemplated
Sen. Bernie Moreno, R-Ohio, in trying to elaborate on the "significant tariff relief" he said was coming for domestic car production, said that the administration is considering how to "open the aperture" of how you use the 3.75% offset of tariffs available for autos assembled between April 3 and May 1, 2026.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
The earlier announcement said that the 3.75% offset would step down to a 2.5% offset for cars made from May 2, 2026, to April 30, 2027.
Moreno told International Trade Today in a hallway interview Oct. 7 at the Capitol that "they could use that for tier one suppliers," if they don't have enough direct imports with tariffs that add up to 3.75% of the manufacturer's suggested retail price.
However, that was already included in the Commerce Department notice of how the offset would work (see 2506130063).
Moreno said "a whole manner of things are on the table" to reward auto assembly in America.
He said the administration wants to make it more profitable to assemble cars in the U.S. vs. imported cars. "That's what we're trying to do," he said.
He said increasing the 3.75% isn't being considered, nor is an exception to Section 232 metals tariffs for automakers or their suppliers.
He told Reuters that extending the number of years a 3.75% offset is available is under consideration, as is offering the offset to engine manufacturing facilities.
CBP would administer the discount on tariffs at the time of entry summary filings, once the Commerce Department approves the amounts, and the importers for whom the discounts would apply.