Tariff Refunds for Auto Parts Importers Importers

Auto parts importers affected by IEEPA tariffs on Chinese components and Canadian parts may qualify for CAPE refunds.

Auto Parts Importers: IEEPA Tariff Refund Eligibility

The automotive aftermarket and OEM parts supply chain was significantly disrupted by IEEPA tariffs during 2025. Chinese-origin automotive components faced escalating IEEPA surcharges throughout the year, while Canadian-origin parts — many of which had previously entered duty-free under USMCA — faced a 25% IEEPA levy beginning in February 2025.

Parts Categories Affected

Chinese-origin aftermarket parts: Brake components, filters, batteries, lighting components, and a wide range of mechanical and electrical parts. China is a major supplier of U.S. aftermarket auto parts across virtually every category.

Canadian-origin OEM parts: Canada is a deeply integrated part of the North American automotive supply chain. The early 2025 IEEPA tariffs on Canadian goods affected parts that had crossed the U.S.-Canada border duty-free for decades under NAFTA and USMCA. These tariffs were particularly disruptive to just-in-time automotive manufacturing.

Mexican-origin components: Similarly, Mexico-manufactured automotive components that had been USMCA-exempt faced temporary IEEPA surcharges during the periods those tariffs were in effect.

Aftermarket vs. OEM Considerations

Aftermarket importers (distributors, parts retailers, online sellers) typically have straightforward IOR situations and can work through their existing customs broker to identify and file CAPE claims.

OEM and Tier 1/2 suppliers importing parts for U.S. manufacturing operations often have more complex customs situations:

Parts may have been imported under bond for manufacturing in bond programs
First-sale or duty reduction programs may have been used
Components may have had both Section 232 (steel/aluminum) and IEEPA tariffs, requiring careful segregation of which duties are refundable under CAPE

Section 232 and IEEPA Interaction

A key complexity for auto parts importers is the interaction between Section 232 steel and aluminum tariffs and IEEPA tariffs. Section 232 tariffs are not refundable under the CAPE program — only IEEPA-specific charges are. If your automotive steel or aluminum purchases carried both 232 and IEEPA codes, only the IEEPA portion is eligible.

Your customs entries should clearly distinguish these duty categories. If they don’t, a customs broker can help parse which amounts apply to which authority.

IEEPA Tariffs by Country — Canada, Mexico, and China all relevant for auto parts
IEEPA Tariff Codes Reference — Distinguish IEEPA codes from Section 232
DIY vs. Working with a Recovery Partner
Check Eligibility