Tariff fight could raise costs
A U.S. trade court is now weighing the legality of President Trump's 10% global import tax, a live legal test that could reshape import costs for cars and parts. ( ) Separately, a proclamation signed April 2 changes how Section 232 tariffs are calculated so imports containing steel are assessed on full customs value rather than just steel content — which can raise prices for parts, tools and repaired vehicles. (vehicleservicepros.com)
A court fight in New York could decide whether a 10% charge gets added to almost every imported car part, tool, and finished vehicle that crosses into the United States. On April 10, the United States Court of International Trade heard challenges to the Trump administration’s global import tax, which took effect on February 24. (usnews.com) The plaintiffs are 24 mostly Democratic-led states and two small businesses, and they say the White House used the wrong legal shortcut after the Supreme Court knocked down most of Trump’s earlier tariff program in February 2026. The administration says the new tariff is lawful and ties it to trade deficits. (usnews.com) (usatoday.com) That court matters because it is the federal court built for customs fights. If the judges block the tariff, importers could get relief fast; if the judges uphold it, the 10% charge stays in the cost stack for anything brought in from abroad. (cit.uscourts.gov) (usnews.com) This legal fight sits next to a separate tariff change that is already live. On April 2, Trump signed a proclamation changing how Section 232 metal tariffs are calculated, and the new method took effect at 12:01 a.m. Eastern Time on April 6. (federalregister.gov) (thompsoncoburn.com) Before April 6, many importers paid the metal tariff only on the steel or aluminum portion inside a product. After April 6, many covered goods are taxed on the full customs value of the entire item, even when the metal is only one part of what was imported. (kpmg.com) (ey.com) That changes the math in a very plain way. If a repair tool, brake component, or vehicle assembly contains steel, the tariff can now be applied to the price of the whole imported product instead of just the value of the steel inside it. (vehicleservicepros.com) (whitecase.com) The April 2 proclamation also created tiers instead of one simple rule. Primary steel, aluminum, and copper articles can face a 50% tariff on full value, many derivative products face 25%, and some industrial and electrical grid equipment gets a temporary 15% rate through December 31, 2027. (kpmg.com) (ghy.com) There is one carveout at the low end. Products with less than 15% steel, aluminum, or copper content can fall out of the Section 232 tariff scope, but goods above that threshold can face higher bills because the duty is now tied to the full entered value. (ey.com) (whitecase.com) For auto shops and parts distributors, the squeeze can come from both directions at once. A global 10% import tax raises the base cost of imported goods, and the revised metal tariff formula can add another layer when those goods contain enough steel, aluminum, or copper. (usnews.com) (vehicleservicepros.com) The court case does not decide the Section 232 metal tariffs. Reuters reported that the lawsuits target the newer 10% global tariff, not the steel, aluminum, and copper duties that were imposed under a different and more traditional legal authority. (yahoo.com) So even if the trade court strikes down the 10% global tariff, importers could still be left with the April 6 full-value metal tariff system. And if the court upholds the 10% tax, the price of imported vehicles, replacement parts, and shop equipment could keep rising under both rules at the same time. (yahoo.com) (federalregister.gov)
