U.S. President Donald Trump signed a proclamation on October 17, 2025, imposing 25% tariffs on imported medium- and heavy-duty trucks and parts, and 10% tariffs on imported buses, effective November 1, 2025.
Key Details of the Tariff Policy
- Scope of Tariffs:
- Applies to Class 3 to Class 8 vehicles, including large pickup trucks, cargo trucks, dump trucks, and semi-trailers.
- Includes vehicle parts such as engines, transmissions, tires, and chassis.
- Buses, including school and transit buses, face a 10% tariff.
- USMCA Carveout:
- Vehicles and parts that qualify under the United States-Mexico-Canada Agreement (USMCA) will be taxed only on their non-U.S. content.
- USMCA-compliant parts are temporarily exempt until a formal process is established by the Commerce Department and U.S. Customs.
- National Security Justification:
- The tariffs were enacted under Section 232 of the Trade Expansion Act of 1962, citing national security concerns over foreign competition in the truck and bus manufacturing sectors.
- Domestic Incentives:
- The policy includes rebates and offsets for companies that assemble vehicles in the U.S., including a 3.75% credit on the suggested retail price of U.S.-assembled vehicles through 2030.
Industry Reaction & Implications
- Mixed reception: While some U.S. manufacturers like Peterbilt and Freightliner may benefit, trade groups and the U.S. Chamber of Commerce have expressed concern over potential price hikes and strained relations with key allies.
- Global impact: Major exporters to the U.S. — including Canada, Mexico, Japan, Finland, and Germany — could see reduced competitiveness in the American market.
Tariff Announcement & Background
- White House Presidential Actions https://www.whitehouse.gov/briefing-room/presidential-actions
- U.S. Department of Commerce – Section 232 Investigations https://www.commerce.gov/section232
- U.S. Customs and Border Protection – Trade and Tariff Info https://www.cbp.gov/trade
News Coverage & Industry Reaction
- Reuters – Trump Imposes Tariffs on Trucks and Buses https://www.reuters.com
- Bloomberg – U.S. Tariff Expansion Targets Commercial Vehicles https://www.bloomberg.com
- U.S. Chamber of Commerce – Statement on New Tariffs https://www.uschamber.com
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