Updated August 525, 2025, 12:00pm PST
New US tariffs on imported vehicles take effect August 7, 2025.
We want to clarify what this means for you, our customers. First and foremost, duties and tariffs are based on country of origin, not country of export. As a result, the majority of vehicles on the Signal platform remain unaffected.
As a refresher, the United States-Mexico-Canada Agreement (USMCA) provides duty-free treatment for qualifying vehicles manufactured in member countries. Vehicles must meet specific regional content requirements to qualify for these tariff exemptions.
What's new
The net result is more predictable pricing and fewer edge cases.
- US vehicles (1/4/5 VINs) remain tariff-free.
- The EU, Japan, and South Korea have favorable rates for cars but not trucks.
- Canada got hit hard (35% unless USMCA-qualified).
- Mexico is holding steady at 25%.
Rates at-a-glance
No duty
1 / 4 / 5 VINs (U.S. Origin)
- Vehicles manufactured in the U.S. (VINs starting with 1, 4, or 5) are exempt from tariffs.
- Note: Check MFR labels. Some vehicles like Lincoln Nautilus have misleading VINs (5 VIN but made in China). Avoid all China-manufactured vehicles regardless of VIN.
New tariff rates
2 VINs (Canadian origin)
- USMCA-qualifying vehicles: Exempt from the new 35% IEEPA tariff, may be partially or fully exempt from existing Section 232 duties (25% where applicable), based upon verified North American context
- Non-USMCA vehicles: 35% tariff (exempt from Section 232 duties due to no stacking of tariffs)
- Note: USMCA claims require validation codes from the manufacturer, these can be difficult to get.
3 VINs (Mexican origin)
- USMCA vehicles may be partially or fully exempt for vehicles manufactured in Mexico, based upon verified North American content.
- Non-USMCA vehicles: 25% tariff
- Note: USMCA claims require validation codes from the manufacturer, these can be difficult to get.
Updated standard duty rates
Other VINs (European & Asian origin)
- EU Member States (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden): 25% for cars and 50% for light trucks
- J VINs (Japan): 27.5% for cars and 50% for light trucks
- K VINs (South Korea): 0% for cars and 25% for light trucks
- S Vins (UK): 25% for cars and 50% for light trucks
- L VINs (China): 55% duty for all vehicles (unchanged)
Notes
- Tariff stacking is prohibited - vehicles subject to these new country-specific tariffs will not incur additional Section 232 steel/aluminum duties
- Always verify VIN accuracy with true country of origin through plant codes or manufacturer confirmation
Operational updates
The Signal platform will continue to be updated to reflect what is happening in the market, specifically in our appraisal tool and export calculator. This will ensure you can continue to make accurate appraisal decisions.
Our outlook
The tariff landscape just got more streamlined. US origin vehicles remain the safe play. Canada is split into clear winners/losers based on USMCA status. Japan, South Korea, and the EU got favorable car treatment but truck penalties. Many vehicles may now start to make economic sense again. Overall, we see less complexity and more predictable margins.
Signal remains committed to supporting our customers’ success with our comprehensive platform and expertise. These market shifts are creating unique opportunities and we're here to help turn these challenges into advantages.
Please reach out to our team with any questions you may have. We’re here for you, every step of the way!
- Tane, President at Signal
