As of April 6, 2026, buyers at dealerships across the United States are seeing sticker prices that reflect a full year of Section 232 automotive tariffs — and the numbers are striking. Following the Liberation Day tariff announcements of April 2025, non-USMCA imported vehicles now carry a 25% duty, pushing prices on BMW (Germany-built), Toyota (Japan-assembled), Mercedes-Benz, and Audi up by an average of 12–18% compared to pre-tariff levels. Section 232 tariff car prices have reshaped the new vehicle market, with some models now costing $5,000–$7,000 more than one year ago. Here is a complete guide to which models are affected, which countries negotiated deals, and how to find USMCA-exempt alternatives at your dealer today.
What Is the Section 232 Automotive Tariff?
Section 232 of the Trade Expansion Act of 1962 allows the President to impose tariffs on imports deemed a national security threat. The automotive tariffs — announced March 26, 2025 and phased in through April 3, 2025 — apply a 25% duty to passenger vehicles and light trucks imported from countries outside the USMCA free trade agreement. By April 2026, these tariffs have been in effect for exactly one year, and their full price impact is now baked into dealer invoice costs, financing rates, and consumer transaction prices.
Which Countries Are Affected by Section 232 Tariffs?
| Country | Tariff Status | Rate | Key Brands Affected |
|---|---|---|---|
| Germany | Full tariff (EU) | 25% | BMW (Munich), Mercedes-Benz, Audi, Volkswagen, Porsche |
| Japan | ART deal negotiated | 10–12.5% | Toyota (Japan), Honda (Japan), Subaru, Mazda, Mitsubishi |
| South Korea | Partial deal | 15% | Hyundai (Korea), Kia (Korea), Genesis |
| United Kingdom | UK framework deal | 10% | Land Rover, Jaguar, MINI (Oxford) |
| Sweden | Full tariff (EU) | 25% | Volvo (Sweden-built models) |
| Mexico (USMCA) | Exempt | 0% | Silverado (MX), Ford Maverick, Toyota RAV4 (MX) |
| Canada (USMCA) | Exempt | 0% | Honda CR-V (Ontario), Ford Edge, Lincoln Corsair |
Japan negotiated an Agreements on Reciprocal Trade (ART) framework in August 2025 that capped tariffs on Japanese-assembled vehicles at 10–12.5%, avoiding the full 25% exposure. South Korea reached a partial agreement at 15%. The EU — including Germany — failed to reach a deal and continues to face the full 25% duty on automotive imports.
Brand-by-Brand Section 232 Tariff Price Impact in April 2026
One full year of 25% tariffs on European vehicles, compounded with inventory tightening and consumer demand shifts, has pushed average transaction prices significantly higher on affected models:
| Brand / Model | Assembly | Tariff | Price April 2025 | Price April 2026 | Increase |
|---|---|---|---|---|---|
| BMW 3 Series (Germany) | Munich, DE | 25% | $43,900 | $51,200 | +$7,300 (16.6%) |
| Mercedes C-Class (Germany) | Bremen, DE | 25% | $45,600 | $52,500 | +$6,900 (15.1%) |
| Audi A4 (Germany) | Ingolstadt, DE | 25% | $42,800 | $49,100 | +$6,300 (14.7%) |
| Toyota Camry (Japan) | Tsutsumi, JP | 10–12.5% | $31,900 | $35,100 | +$3,200 (10.0%) |
| BMW X5 (USA) | Spartanburg, SC | 0% | $67,100 | $68,900 | +$1,800 (2.7%) |
| Toyota Camry (Kentucky) | Georgetown, KY | 0% | $31,900 | $33,100 | +$1,200 (3.8%) |
| Honda Accord (Ohio) | Marysville, OH | 0% | $30,600 | $31,700 | +$1,100 (3.6%) |
The same Toyota Camry model, built in two different countries, now carries a $2,000 price gap solely due to tariff exposure — before any state or local taxes. The Kentucky-built Camry is now the clear buyer's choice for cost-sensitive purchasers.
How to Check If Your Vehicle Is Tariff-Affected: The VIN Test
The fastest verification is the first character of the 17-digit VIN:
- 1, 4, or 5 — US-assembled: No Section 232 tariff
- 2 — Canada-assembled: USMCA exempt, no tariff
- 3 — Mexico-assembled: USMCA exempt, no tariff
- J — Japan-assembled: 10–12.5% tariff (ART deal rate)
- K — South Korea-assembled: 15% tariff
- W — Germany/Austria-assembled: 25% tariff — highest exposure
- S — UK-assembled (Land Rover, Jaguar): 10% tariff (UK framework deal)
Dealers are required to disclose country of final assembly on the Monroney label (window sticker). Look for "Final Assembly Point" near the bottom. For additional verification, use the NHTSA vehicle lookup portal to cross-reference any VIN against assembly location data before completing a purchase.
Tariff-Free European Brand Vehicles: What Is Still Available
Several European automakers have significant US assembly operations that are completely exempt from Section 232 tariffs — allowing buyers to get the brand without the price penalty:
- BMW X3, X4, X5, X6, X7: All assembled in Spartanburg, SC — zero tariff
- Mercedes-Benz GLE, GLS: Assembled in Vance, AL — zero tariff
- Volvo S60, V60: Assembled in Berkeley County, SC — zero tariff
- Honda Accord, Pilot: Marysville, OH — zero tariff
- Toyota Camry, Avalon: Georgetown, KY versions — zero tariff
🔍 Find Your Car's Total Cost After Tariffs + State Tax
State sales tax, registration, and documentation fees on top of tariff-adjusted prices vary widely. Get the full all-in cost for any vehicle in any US state.
Negotiating Smart in a Tariff Market
The Section 232 tariff has given many dealers cover to resist negotiation on heavily-tariffed European vehicles. Several strategies remain effective:
- Target US-assembled equivalents: The BMW X5 (Spartanburg) now costs less than the Germany-built BMW 5 Series — pivot to US-built options within brands where possible.
- Request itemized tariff disclosure: Ask the dealer to show the vehicle invoice separately listing any tariff surcharge. This is a legitimate transparency request — dealers who refuse are hiding their margin on the tariff pass-through.
- Consider certified pre-owned: Used vehicles purchased before April 2025 carry no Section 232 tariff cost. A CPO German vehicle at a franchise dealer can represent significant savings over its new equivalent.
- Target Japan and UK-origin models: At 10–12.5% and 10% respectively, these face far lower tariff exposure than full 25% German vehicles — and more negotiating room exists because per-unit tariff cost is lower.
Frequently Asked Questions
Are used imported cars subject to the Section 232 tariff?
No. Section 232 automotive tariffs apply only to new vehicles crossing the US border for the first time as imported merchandise. Used vehicles already in US inventory are not subject to the automotive tariff — making the used market an effective way to access foreign-origin models at pre-tariff equivalent pricing.
Will Japan's ART deal reduce tariffs to zero over time?
The Japan ART framework caps rates at 10–12.5% through at least 2027, with a path to further reduction subject to trade balance reviews. There is no automatic timeline to zero for Japanese vehicle imports under the current agreement.
Do Section 232 tariffs apply to electric vehicles differently?
No — Section 232 applies uniformly by country of assembly, regardless of powertrain. A German-assembled EV faces the same 25% tariff as a German-assembled ICE vehicle. German-assembled EVs are doubly disadvantaged: they carry the 25% tariff AND are ineligible for the $7,500 federal EV tax credit, which requires North American assembly.
Can I order a car via European Delivery to avoid the tariff?
No. Factory ordering or European Delivery programs do not exempt the vehicle from Section 232 tariffs. The tariff applies at the US port of entry when the vehicle arrives, regardless of how it was ordered. BMW's European Delivery program was substantially curtailed after April 2025 tariffs took effect due to the cost impact.