The tariff structure has since evolved. By mid-2026, effective rates on automobiles and parts ranged from 0% to 27.5% depending on country of origin, with a 10% baseline Section 122 tariff applied broadly before being replaced by a Section 301 forced-labor tariff in late July. The European Union secured a 15% all-inclusive ceiling under a deal effective July 1, 2026, while Mexico retained duty-free access under USMCA rules.
The transmission into trade flows has been rapid. Advance goods trade data for June 2026 show automotive vehicle imports at $36.09 billion, not seasonally adjusted. Meanwhile, the broader U.S. goods and services deficit narrowed to $73.3 billion in June, with exports of goods falling $4.0 billion to $206.9 billion, partly reflecting the drag from automotive shipments.
The pain is not confined to U.S. borders. Mexico's auto parts sector has shed an estimated 180,000 supply-chain jobs since the tariffs took effect, with total manufacturing employment in the sector falling to 742,000 workers in April 2026—a loss of 107,000 positions over two years. Parts manufacturers accounted for 91,000 of those cuts, as companies accelerated automation and sought greater cost flexibility.