Classic car enthusiasts have discovered a significant advantage amidst recent trade tariffs imposed by the Trump administration. Despite concerns across the automotive industry, a carefully worded clause within the official documents provides a pathway for classic vehicles to avoid substantial import costs.
Last week’s announcement designating “Liberation Day” saw President Trump confirm a 25 per cent tariff on imported foreign automobiles, a measure initially proposed in March and ultimately implemented despite hopes of a trade agreement. This news prompted immediate reactions from major car brands, with some, like Jaguar Land Rover, temporarily halting deliveries to the United States while others explored price increases and project delays.
However, a crucial detail overlooked by many has been identified by automotive shipping expert Mike Harvey of Autoshippers. He highlighted what he termed a “little gem” within the tariff documentation – a new classification specifically for older vehicles.
As Harvey explained: “The fine print of the ‘Liberation Day’ declaration reveals a new classification for cars aged 25 years or older, effectively exempting them from the 25 per cent tariff.”
Specifically, under the Harmonized System code 9903.94.04, these classic vehicles are subject to a standard duty of just 2.5 per cent. This provides a considerable financial benefit compared to the higher tariffs applied to newer models.
To qualify for this exemption, Harvey stressed the importance of adhering to regulations:
- Vehicles must meet the 25-year age requirement.
- All necessary import, shipping, and customs documentation must be prepared and submitted.
Harvey recommended utilizing container or RoRo (Roll-on/Roll-off) shipping methods to major US ports for optimal results.
The impact of this loophole is substantial, particularly given the volume of UK car exports to the United States. In 2024, over 101,000 passenger cars were shipped from the UK to the US – representing nearly 17 per cent of all UK vehicle exports and a value of £7.6 billion according to the Society of Motor Manufacturers and Traders (SMMT).
While the US exported only around 18,000 units to the UK in the same period, the export of premium and luxury vehicles from the UK to the United States has been a significant trend. Whether this will be affected if the tariffs become a long-term policy remains to be seen.
This unexpected benefit provides welcome relief for classic car collectors and importers, ensuring that the passion for vintage automobiles can continue without being unduly burdened by new trade restrictions.
