International trade attorney details seven strategies for managing tariff volatility in auto industry

Jennifer M. Smith-Veluz outlines compliance and risk mitigation approaches amid the expanding U.S. tariff landscape.

Butzel Long international trade attorney Jennifer M. Smith-Veluz outlined seven key strategies for automotive aftermarket companies navigating the complex tariff environment in 2025.

Those strategies are:

  1. Tracking the latest developments
  2. Checking supply chains for tariff vulnerabilities
  3. Taking reasonable care to ensure customs declarations are correct
  4. Monitoring quarterly tariff inclusion requests and submitting responsive or rebuttal comments within 14 days
  5. Considering how to make tariffs work for them
  6. Preserving rights to refunds
  7. Asking appropriate questions

The automotive aftermarket has faced unprecedented tariff pressure this year, with new "reciprocal" tariffs on nearly all imports from all countries ranging from 10% to over 40%. Additional measures include 25% tariffs on automobiles and automotive parts, 50% tariffs on aluminum, steel, and semifinished copper products, and elimination of duty-free treatment for shipments valued at $800 or less.

Regional restrictions include 50% tariffs on most Brazilian imports and 25% to 35% tariffs on Mexican and Canadian imports that fail USMCA compliance. Chinese import tariffs now total 37.5% to 55%, while a UK trade deal adds 10% tariffs on passenger vehicle parts and 25% on aluminum and steel.

Smith-Veluz recommended that companies track tariff developments, audit supply chains for vulnerabilities, ensure customs compliance, and monitor quarterly inclusion requests. Strategic considerations include leveraging tariffs competitively and preserving refund rights as legal challenges proceed through courts.

This information is current as of July 31, 2025, and is for informational purposes only. Complete explanations of the strategies can be found on her post

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