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.

April 8, 2025 – Tariff Updates

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: