On May 1, 2026, President Trump announced a 25% tariff on vehicles manufactured in the European Union. For anyone bringing a privately owned vehicle back to the United States, this is not a small filing detail. It can change the landed cost by thousands of dollars.
The tariff applies to EU-manufactured passenger vehicles, including brands and models built by BMW, Mercedes-Benz, Volkswagen, Audi, Porsche, Volvo, Peugeot, Renault, Citroën, Fiat, Alfa Romeo, and other European manufacturers. The country of manufacture matters. Do not assume the brand name alone answers the question. A VIN review and country-of-origin check should be part of the import file before the vehicle ships.
The Cost Impact
The 25% tariff is calculated against the vehicle’s customs value. For most privately owned vehicle imports, that means the purchase price or the fair market value used for customs entry.
Simple example: a used Mercedes valued at $40,000 would face a 25% tariff of $10,000 if no exemption applies. That duty is separate from ocean freight, marine insurance, port handling, customs brokerage, and final delivery.
That is the part people miss. The tariff is not 25% of the shipping cost. It is 25% of the vehicle value.
Who Is Exempt Under HTS 9805.00.50
This is the critical section for returning military families, civilian government employees, government contractors, and private importers. These groups are not treated the same.
HTS 9805.00.50 covers “the personal and household effects” of a person “in the service of the United States” who returns to the United States after termination of an assignment to extended duty outside the customs territory of the United States, along with returning family members who resided with that person overseas.
For vehicle entries, CBP’s personal vehicle guidance applies this provision to military personnel and civilian employees of the United States. CBP also says the vehicle must have been in the direct personal possession of the claimant, or a member of the claimant’s household, while abroad. For a vehicle, that means the claimant must have taken possession of and registered the vehicle while overseas. If proof of overseas registration is not provided, CBP says the vehicle is not entitled to free entry under 9805.00.50 and the appropriate duties must be paid.
In plain terms: military service members and civilian U.S. government employees may qualify under HTS 9805.00.50 when the extended-duty, personal-use, possession, and overseas-registration requirements are met. Extended duty generally means 140 days or more outside the customs territory of the United States. The vehicle cannot be imported for sale, resale, or for someone who is not covered by the exemption.
Government contractors do not qualify under HTS 9805.00.50 just because their employer has a federal contract. Contractors are employees of private companies, not military personnel or civilian employees of the United States for this exemption. A contractor may still have a duty position under other returning-resident provisions in 19 CFR 148, but those rules are different and more limited. Contractors should have AWIS review the file before the vehicle ships.
Non-military individuals generally should plan to pay the full tariff unless a specific returning-resident or other exemption applies to their facts. A vehicle owned and used overseas may qualify for limited duty treatment in some returning-resident cases, but that is not the same as the HTS 9805.00.50 exemption for military personnel and civilian U.S. government employees. If you are not certain which category applies, consult a licensed customs broker for your specific situation.
The exemption does not waive federal vehicle admissibility rules. Imported vehicles still must meet EPA and DOT requirements regardless of tariff treatment. That issue should be reviewed before the vehicle is booked, not after it is sitting at a U.S. port.
There is one more separate exemption worth noting. Used vehicles manufactured at least 25 years before the year of entry are exempt from Section 232 duties. That rule is often relevant for classic and older specialty imports, but it does not fix EPA, DOT, title, or state registration issues by itself.
If You Do Not Qualify
If the Chapter 98 exemption does not apply, plan for the tariff before the vehicle moves. Work with a licensed customs broker and make sure the valuation is supportable.
Overstating the value costs you money. Understating it creates compliance risk. Customs value should be backed by purchase records, market data, condition, mileage, and any other documents needed to support the entry.
Do not wait until arrival to ask whether the duty applies. By then, the vehicle is already moving, storage can start, and your options are worse.
How TGAL and AWIS Help
TGAL handles the international vehicle shipping side: RoRo or container options, booking, origin coordination, marine insurance, and delivery planning. We work with military families, government personnel, contractors, and private importers bringing vehicles back from overseas assignments.
AWIS handles the customs side: entry review, tariff classification, Chapter 98 eligibility, valuation, EPA and DOT document checks, and duty calculation. When the exemption applies, the entry needs to be filed correctly. When it does not, the landed-cost estimate needs to be clear before the shipment moves.
If you are returning from Europe with an EU-manufactured vehicle, get the import reviewed before booking. The right answer depends on your assignment status, duty length, possession history, vehicle age, customs value, and admissibility documents.
That is not paperwork for paperwork’s sake. It is the difference between a clean import and a very expensive surprise at the port.
Sources: U.S. Customs and Border Protection, Section 232 Additional FAQs – Automobiles and Auto Parts: https://www.cbp.gov/trade/programs-administration/entry-summary/section-232-additional-faqs-autos; CBP Personal Vehicle Import Guidance: https://www.cbp.gov/trade/basic-import-export/personal-vehicle; HTS 9805.00.50 text: https://www.htshub.com/us-hs/detail/98050050
