EPICBROKERS.COM ©2025 Edgewood Partners Insurance Center. All rights reserved. | CA License: 0B29370 EPIC Insurance Brokers & Consultants is proud of its partnership with more than 300 California dealerships and is the CNCDA’s only licensed broker for health insurance and employee benefits. As the dealers’ consultant, experience what EPIC can do for you, including: • A team producing significant results with decades of experience understanding the specific needs of dealerships • Fully insured and unique alternative funding options to best fit your dealership’s needs and provide the most significant savings • Full compliance services and HR support for your team FOR A BENEFIT COST ANALYSIS AND COMPLIANCE CONSULTATION, PLEASES CONTACT: Alison McCallum (949) 422-6431 alison.mccallum@epicbrokers.com 20 SAN DIEGO DEALER automakers that assemble and sell vehicles in the U.S. to apply a 3.75% MSRP-based credit that helps blunt 25% tariffs on imported parts; the program had been set to fall to ~2.5% and sunset. Related actions also formalized new 25% tariffs on imported medium and heavy-duty trucks and a 10% tariff on buses, with USMCA-qualifying truck imports exempted from those new truck duties. Does “U.S. production” include USMCA vehicles assembled in Canada or Mexico? No — the offset credit is tied to vehicles assembled in the United States under procedures published by the U.S. Department of Commerce. USMCA-eligible vehicles assembled in Canada or Mexico are handled under separate relief mechanisms that apply preferential treatment to qualifying North American content, including a process to isolate U.S. content when assessing certain tariffs; they do not count as “U.S. production” for the offset. KEY TAKEAWAYS • Tariff engineering remains legal when transparent and grounded in accurate classification at the time of import. • Policy tools can matter as much as design tweaks. Canada’s remission quotas show that relief can be conditioned and withdrawn based on domestic production commitments. • The U.S. offset extension (to 2030) buys time for supply chain adjustments, but it hinges on U.S. assembly; don’t assume USMCA-assembled vehicles qualify for that credit. • Importers and manufacturers should seek advance rulings and track agency guidance to avoid stacking errors or missed relief. (Commerce has issued detailed procedures for applying the offset and related programs.) Sources 1. Associated Press. (2025, October). Canada cuts tariff relief on some US cars due to Stellantis, GM ending some Canadian production. The Hill. 2. Bloomberg Law. (2025, October). Trump Extends Auto Tariff Relief, Imposes Truck and Bus Duties. 3. U.S. Department of Commerce. (2025, October). Department of Commerce announces new auto tariff offset process.
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