Importing a Vehicle into the United States: Updated 2025 Policy Guide

Importing a Car into the U.S. in 2025: Section 232 Tariffs, Reciprocal Duties, and Classic Car Exemptions

Importing a vehicle into the United States involves navigating a complex framework of federal tariffs, reciprocal trade duties, safety standards, environmental regulations, and state-level requirements. These have all undergone significant changes in 2025. Understanding the current US import tax structure—including Section 232 tariff policies, reciprocal tariff frameworks, the 25-year rule exemption, and regulatory compliance obligations—enables strategic planning for successful vehicle imports while managing total costs effectively.

At West Coast Shipping, we provide comprehensive guidance through U.S. vehicle import regulations, ensuring compliance with federal and state requirements while optimizing duty calculations and leveraging available exemptions for cost-effective imports.

U.S. Vehicle Import Tax Structure and Policy Changes (2025)

Traditional Tariff Framework (Pre-2025)

• Base Customs Duty: 2.5% of the customs value for most passenger cars.

• Pickup Trucks: Subject to the 25% "Chicken Tax."

• Simple Application: Predictable and straightforward prior to 2025.

Updated: Section 232 Tariffs and Reciprocal Duties (April 2025)

As of April 3, 2025, the U.S. implemented a revised import tariff regime:

• A 25% Section 232 tariff applies to finished vehicles from non-exempt origin countries.

• A 15% baseline reciprocal tariff now applies to most vehicles, including modern, classic, and race cars—replacing prior rates that were often lower.

• Important Note: The 15% total tariff includes the original 2.5% base duty. It is not in addition to it.

Initially, CBP guidance excluded classic cars (25+ years old) from both Section 232 and reciprocal duties. However, this guidance was later revised. While Section 232 still does not apply to classic cars, reciprocal tariffs do.

Current Tariff Outcomes by Country

• Canada & Mexico: Favorable treatment under USMCA; 2.5% or lower if qualified.

• European Union (e.g., Germany, France, Italy): 15% total ad valorem tariff (inclusive of 2.5%) on most vehicle imports.

• United Kingdom: 10% reciprocal tariff plus 2.5% base.

• Japan: 15% total tariff on most modern vehicles, no Section 232 tariff.

• Countries with trade deficits: Full 25% Section 232 plus additional baseline tariffs.

Section 232 and Reciprocal Tariff Exemptions

HTSUS Exemption Codes

• HTS 9903.94.04 – Exempts qualifying vehicles (25+ years old) from the 25% Section 232 tariff.
  
  
• HTS 9903.01.33 – This code is intended to avoid reciprocal tariffs, because Section 232 has already been applied. However, it also falls under a category that reduces Section 232 to 0%, which means this code cannot be used if Section 232 is already 0%.
  
  
• HTS 9903.94.02 – May be used for specific race cars to avoid paying Section 232; reciprocal tariff still applies unless exempt under a separate code.

While Section 232 does not apply to classic vehicles, reciprocal tariffs must still be paid unless specifically excluded under a trade agreement or classification.

Chapter 98 Classifications

Special exemptions are available for:

• Government & Military Personnel: Under certain Chapter 98 provisions for returning U.S. citizens or duty stations.

The 25-Year Rule: Classic Vehicle Import Benefits

Vehicles aged 25 years or older receive specific regulatory benefits:

• Exempt from the 25% Section 232 tariff.

• Still subject to reciprocal tariffs (e.g., 10% or 15%) unless otherwise exempt.

• The 2.5% base customs duty remains in effect.

Documentation Required:

• VIN decoding

• Manufacturer build date proof

• Proper classification under HTS 9903.94.04

Sample Cost Scenarios

Example 1: Vehicle Import from EU (Classic, 25+ Years Old)

Customs Value: US$ 25,000
Country of Manufacture: Germany
Vehicle Age: Over 25 years (qualifies under HTSUS 9903.94.04)

Applicable Duties & Tariffs

• Base Customs Duty (2.5%): US$ 625

• Section 232 Tariff: Exempt under 9903.94.04

• Reciprocal Tariff (Germany, 15% inclusive of base duty): US$ 3,750

Additional Costs

• MPF (0.3464%): US$ 86.60

• HMF (0.125% of ocean freight est. US$3,000): US$ 3.75

• State Sales Tax (~6%): US$ 1,781

• Registration / Title: US$ 200–500

• Broker & Professional Services: US$ 800–1,500

Estimated Total Cost: US$ 7,246 – US$ 9,245
(29–37% of vehicle value)

Example 2: Vehicle Import from Japan (Classic, 25+ Years Old)

Customs Value: US$ 25,000
Country of Manufacture: Japan
Vehicle Age: Over 25 years (qualifies under HTSUS 9903.94.04)

Applicable Duties & Tariffs

• Base Customs Duty (2.5%): US$ 625

• Section 232 Tariff: Exempt under 9903.94.04

• Reciprocal Tariff (Japan, 15% inclusive of base duty): US$ 3,750

Additional Costs

• MPF (0.3464%): US$ 86.60

• HMF (0.125% of ocean freight est. US$3,000): US$ 3.75

• State Sales Tax (~6%): US$ 1,781

• Registration / Title: US$ 200–500

• Broker & Professional Services: US$ 800–1,500

Estimated Total Cost: US$ 7,246 – US$ 9,245
(29–37% of vehicle value)

Example 3: Vehicle Import from Germany (Modern, Under 25 Years Old)

Customs Value: US$ 25,000
Country of Manufacture: Germany
Vehicle Age: Under 25 years (does not qualify for classic exemption)

Applicable Duties & Tariffs

• Total Tariff (15% flat, includes 2.5% base duty): US$ 3,750

• Section 232 Tariff: Not applicable for EU vehicles under current guidance

Additional Costs

• MPF (0.3464%): US$ 86.60

• HMF (0.125% of ocean freight est. US$3,000): US$ 3.75

• State Sales Tax (~6%): US$ 2,250

• Modifications / Compliance (FMVSS, EPA): US$ 15,000–25,000

• Registration / Title: US$ 200–500

• Broker & Professional Services: US$ 1,500–3,000

Estimated Total Cost: US$ 33,090 – US$ 48,600

Strategic Planning Recommendations

To optimize vehicle import costs in 2025:

• Verify Vehicle Age: Establish 25+ years status to qualify for Section 232 exemption.

• Identify Country of Origin: Tariff rates differ by agreement (EU, UK, Japan).

• Apply Proper HTS Codes: Ensure correct use of 9903.94.04 and 9903.01.33.

• Include MPF, HMF, and All State-Level Costs in your planning.

• Partner with a Specialist: West Coast Shipping can assist with classification, documentation, and customs coordination.

Estimate Your Import Costs Today

Use our U.S. Car Import Duty Calculator to estimate total duties, taxes, and exemptions under the updated 2025 framework.

Or contact us to speak with a specialist for personalized guidance on classic and modern vehicle imports.