This headline is misleading because it makes it seem like tariffs are a step function that activate below 85%, which isn't true.
The formula is a simple, linear equation: tariffs = 0.25 * MSRP * (percent foreign content - 15)
Companies with 84% domestic content will pay a 25% tariff on 1% of the MSRP, companies with 70% domestic content will pay a 25% tariff on 15% of the MSRP, etc.
This is a common sense way to incentivize companies to make parts here without requiring perfection.
The formula is a simple, linear equation: tariffs = 0.25 * MSRP * (percent foreign content - 15)
Companies with 84% domestic content will pay a 25% tariff on 1% of the MSRP, companies with 70% domestic content will pay a 25% tariff on 15% of the MSRP, etc.
This is a common sense way to incentivize companies to make parts here without requiring perfection.
Here is the proclamation:
https://www.whitehouse.gov/presidential-actions/2025/04/amen...