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← Tariff Schedule
HS 8708.40Critical

Gear boxes and parts thereof for motor vehicles

Chapter 87 — Vehicles and parts thereof|Section 232 (Auto)
Current tariff rate
25%
Prior rate
0% (CUSMA)
Canadian export value
$2.2B
CUSMA eligible
Yes (RVC 75%)
TARIFF DETAILS
Effective date
2025-05-03
Tariff type
Section 232 (Auto)
CUSMA INFORMATION
Eligibility
Eligible
RVC threshold
75%
SECTOR IMPACT

Transmission and powertrain parts face compounding tariff costs due to multi-crossing supply chain integration.

NOTES

Transmission production in Canada includes Linamar and Dana operations. Transmissions cross the border multiple times during assembly, magnifying tariff impact.

MITIGATION STRATEGIES

Actionable options for affected Canadian exporters

  1. 1

    CUSMA RVC optimization

  2. 2

    Supply chain restructuring

  3. 3

    US production facility

INDUSTRIES AFFECTED BY THIS TARIFF

Canadian industries exposed to HS 8708.40 tariff changes

Automotive ManufacturingCritical
Manufacturing·92/100 impact
RELATED TARIFF CODES
8708.29Critical

Other parts and accessories of motor vehicle bodies

25%Critical
8708.99Critical

Other parts and accessories for motor vehicles, not elsewhere specified

25%Critical
8703.23Critical

Motor vehicles for transport of persons, spark-ignition, cylinder capacity 1500–3000 cc

25%Critical

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