Tariff Updates: Impact on Fleet Operations | Wheels
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Tariff Updates

As the tariff situation on imports from Canada, Mexico, and China continues to evolve, we want to keep you up-to-date about their potential impacts on fleet operations.

May 12, 2025

The US will reduce the tariff on Chinese imports from 145% to 30%. China will lower its import duty on US goods to 10%, down from 125%. China will also suspend the “non-tariff countermeasures”. Both parties will have these revised tariffs in place by May 14, 2025.

This will be in effect for a period of 90 days, allowing all parties to continue discussions on a permanent resolution during that time.

Additionally, the US has cut the de minimis tariff on low value shipments from China to 54%, down from 120%. This impacts shipments with a value of $800 or less. The alternative flat base fee of $100 per package remains in place and will not increase to $200 as had originally been announced.  The new 54% rate only applies to shipments handled by postal services such as USPS. Deliveries from UPS, FedEx and other express courier companies will instead face the baseline tariff on Chinese goods, which the US lowered to 30%.

For more information, you can review these two White House Fact Sheets:

Joint Statement on U.S.-China Economic and Trade Meeting in Geneva – The White House

Fact Sheet: President Donald J. Trump Secures a Historic Trade Win for the United States – The White House

April 29, 2025

Tariff offsets announced for parts in U.S.-assembled vehicles. The policy provides “import adjustment offsets” against the 25% tariff manufacturers would otherwise pay on imported parts of up to 3.75% of vehicle MSRP for all vehicles assembled domestically between April 3, 2025 and April 30, 2026 and 2.5% of MSRP for all vehicles assembled domestically between May 1, 2026 and April 30, 2027. These MSRP-based offset rates allow manufacturers to obtain rebates based on the application of the 25% Automobile/Part Tariff on automobile parts to 15% of a vehicle’s value (in the first year) and 10% of a vehicle’s value (in the second year). In other words, imports of automobile parts constituting above 15% (or 10% in the second year) of a vehicle’s value will not be able to benefit from this offset, providing a continued incentive for domestic sourcing (which increases with time).  For example, the fact sheet from the White House states, if a manufacturer builds a car in the U.S. that has 85 percent U.S. or USMCA content, the manufacturer effectively will not owe tariffs on that vehicle’s production for the first year. Similarly, if a manufacturer builds a car in the U.S. that is 50 percent U.S. or USMCA content and 50 percent imported from elsewhere, then instead of paying the tariff on the full 50 percent of the imported parts, the manufacturer effectively only pays on 35 percent for the first year.

Tariff “stacking” ended – vehicles and auto parts tariffed under the Section 232 tariffs will not be subject to the additional 25% tariff on steel and aluminum or on Mexican and Canadian tariffs.

April 24, 2025

Blog: Navigating Tariffs with a Resilient Fleet Strategy

Tariff changes in 2025 are reshaping vehicle costs, procurement, and sourcing. Learn how fleet leaders can stay ahead with strategies from our client management and analytics teams.

Read the blog

April 9, 2025

On April 9, 2025, the president announced a 90-day pause on the implementation of certain newly issued tariffs, including the reciprocal tariffs, aimed at alleviating recent market volatility and providing a window for further trade negotiations. This pause does not extend to the 25% tariff on imported autos or the 10% base tariff. Despite this pause, the tariff rate on Chinese imports was increased by 125%. With the existing 20% tariff, this raises the rate on Chinese imports to 145%.

Tariffs Affected by the 90-Day Pause:

  • Country-Specific Tariffs: The pause applies to the additional tariffs that were set to be imposed on various countries, excluding China. These tariffs, which ranged from 11% to 50%, were part of the administration’s “reciprocal tariffs” strategy targeting specific nations based on trade imbalances and other factors. ​

Tariffs Not Affected by the Pause:

  • The tariff on imported autos and parts of 25% was kept in place.
  • Baseline 10% Tariff: The universal 10% tariff on all imports, which took effect on April 5, 2025, remains in place during this period.
  • Tariffs on Chinese Imports: Tariffs on Chinese goods have been increased to 145%.
  • Tariffs on Mexico and Canada: The 25% tariffs on certain imports from Mexico and Canada, particularly those not covered under the USMCA, remain in effect. Additionally, imports of energy and potash from these countries continue to be subject to a 10% tariff.

The White House stated this pause is intended to provide a temporary reprieve, allowing for negotiations and adjustments in trade policies with various countries, while maintaining pressure on China through increased tariffs.

April 8, 2025

On April 2, 2025, the United States announced significant tariffs impacting key trading partners including Canada, Mexico and China. A summary of the effective dates for currently proposed tariffs is provided below.

  • April 4, 2025 – The USMCA automobile exemption expired.
  • April 5, 2025 – A universal baseline tariff of 10% imposed on all imports into the US.
  • April 9, 2025 – Reciprocal tariffs in effect for specific countries based on trade imbalances. Most notably these are:
  • China: Additional 34% on top of the existing 20% tariff
  • EU: 20%
  • Japan: 24%
  • South Korea: 25%
  • Vietnam: 46%
  • Cambodia: 49%
  • For Canada and Mexico, the previous tariff of 25% is still in place and due to the existing trade agreements, the reciprocal tariffs will not apply.
  • Mexico: Currently, the tariff is 25% on general goods and 25% on automobiles and parts.
  • Canada: 25% on general goods; 10% on energy products; and 25% on automobiles and parts.
  • May 2, 2025 – The De Minimis exemption will be eliminated for packages from China and Hong Kong.
  • May 3, 2025 – Tariffs will begin on automotive parts. Currently, USMCA compliant auto parts are tariff-free until the Secretary of Commerce establishes a process to apply tariffs to non-compliant content.

Current Tariff Information

  • The 25% tariff for steel and aluminum imports from all countries remains in effect, but is not subject to reciprocal tariff. This tariff was announced on February 11, 2025 and implemented on March 12.
  • Currently exempt – Energy products such as oil and gas, pharmaceutical, semiconductors and lumber.

Supporting our Clients through Ongoing Change

We recognize that these developments introduce complexity into vehicle sourcing, pricing, and timing. Our teams are actively collaborating across functions to support you through these changes. While information continues to evolve, here’s how we’re working together:

  • Procurement – We’re working closely with OEMs, suppliers, and other supply chain partners to maintain strong lines of communication and gather as much information as possible.
  • Analytics – We’re evaluating and analyzing a range of data to help clients assess risk exposure and model various scenarios that guide informed vehicle acquisition and maintenance cost strategies in this changing landscape.
  • Client Management – Our teams are available to review your strategies and support decision-making. We encourage you to work directly with your Wheels representative to navigate this environment effectively.

Government Resources

For more detailed information, the White House Fact Sheets provide the specifics in this announcement:

March 27, 2025

On March 26, 2025, the United States announced a 25% tariff on automobiles assembled outside the country, effective April 3. The scope of this announcement includes: ​

  • The 25% tariff applies to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key parts like engines, transmissions, powertrain components, and electrical systems. Tariffs may expand to more parts if needed. 
  • USMCA vehicle importers can certify U.S. content, and tariffs will apply only to the value of non-U.S. content. 
  • USMCA-compliant parts remain tariff-free until a process is established to assess their non-U.S. content, which is targeted for May 3. 

Concerns have been raised about potential increases in vehicle prices and disruptions to the global automotive supply chain. Wheels is closely monitoring manufacturer reactions, reaching out to our OEM representatives and watching market developments, and we will share updates as they become available. 

The White House Fact Sheet provides the specifics in this announcement: 

Fact Sheet: President Donald J. Trump Adjusts Imports of Automobiles and Automobile Parts into the United States –  

March 7, 2025

As the tariff situation on imports from Canada, Mexico, and China continues to evolve, we want to keep you up-to-date about their potential impacts on fleet operations. Please rest assured that we are actively monitoring these developments to keep you informed and prepared.

As of 12:01AM, Tuesday, March 4th, tariffs were imposed on goods from multiple countries. Key details include:

  • Mexico: 25% on all goods, including vehicles, parts and components (80% of Mexico’s auto exports go to the U.S.), as well as energy, including oil and natural gas. As of March 5th, this tariff has been paused for one month for the “Big 3” automakers: Ford, GM and Stellantis. Additionally, on March 6, the 25% tariff for Mexico was delayed for 30 days on anything falling under the USMCA agreement
  • Canada: 25% on all goods, including vehicles, components, and parts. There is a lower 10% tariff on energy imports (oil, natural gas, electricity, coal, uranium and critical minerals). As of March 5th, this tariff has been paused for one month for the “Big 3” automakers: Ford, GM and Stellantis. Additionally, on March 6, the 25% tariff for Canada was delayed for 30 days on anything falling under the USMCA agreement.
  • China: An additional 10% on all goods—added to the existing 10% tariff announced February 4th for a total of 20%. This includes EVs and connected car technologies.    

Increased vehicle costs will depend upon the duration of tariffs and many other factors in the supply chain. However, while it is early to speculate, the cost of producing cars throughout North America could rise between $3,500 and $12,000 per vehicle, according to analysis of both public and private data by the Anderson Economic Group.

Our team is closely following all tariff activity and will provide timely updates. As this situation unfolds, Wheels is actively communicating with manufacturers, researching country-of-origin for your vehicles and exploring both alternative sourcing and operational adjustment.

More information can be found on OEM pages:

If you have any questions or would like to discuss how these changes might affect your business, please feel free to reach out to your Wheels account manager.

February 11, 2025

The announcement of tariffs on imported goods from Canada, Mexico and China has created significant uncertainty in the automotive industry. As of February 3, the proposed tariffs on Mexican and Canadian imports have been paused for 30 days. As of February 4, Chinese tariffs have been implemented.

Wheels will continue to monitor all developments, as long-term tariffs could have a significant impact on the automotive industry, and consequently fleets. We are committed to keeping our customers informed as these developments occur and will actively work to communicate the impact on fleet operations. Updates will be posted to this page as they become available.

More information can be found on OEM pages: