Trump announces 25 percent tariffs on medium and heavy imported trucks

Last month, US President Donald Trump had said helium would present caller tariffs to support the manufacture of medium- and heavy-duty trucks from extracurricular competition.

United States President Donald Trump has said that each medium- and heavy-duty trucks imported into the state volition look a 25 percent tariff complaint starting November 1, a important escalation of his effort to support US companies from overseas competition.

Trump made the announcement connected Monday.

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Last month, Trump had said dense motortruck imports would look caller duties connected October 1 connected nationalist information grounds, saying the caller tariffs were to support manufacturers from “unfair extracurricular competition” and that the determination would payment companies specified arsenic Paccar-owned Peterbilt and Kenworth and Daimler Truck-owned Freightliner.

Under commercialized deals reached with Japan and the European Union, the US has agreed to 15 percent tariffs connected light-duty vehicles, but it is not wide if that complaint volition beryllium acceptable for larger vehicles.

The Trump medication has besides allowed producers to deduct the worth of US components from tariffs paid connected light-duty vehicles assembled successful Canada and Mexico.

Larger vehicles see trucks for delivery, garbage pickup, and nationalist utilities; buses for transit, shuttles, and schools; tractor-trailer trucks; semitrucks; and heavy-duty vocational vehicles.

Impact connected allies

The US Chamber of Commerce earlier urged the US Commerce Department not to enforce caller motortruck tariffs, noting the apical 5 import sources are Mexico, Canada, Japan, Germany, and Finland, “all of which are allies oregon adjacent partners of the United States posing nary menace to US nationalist security”.

Mexico is the largest exporter of medium- and heavy-duty trucks to the US. A survey released successful January said imports of those larger vehicles from Mexico person tripled since 2019 to astir 340,000 today, according to authorities statistics.

Under the United States-Mexico-Canada Agreement (USMCA) commercialized deal, medium- and heavy-duty trucks determination escaped of tariffs if astatine slightest 64 percent of a dense truck’s worth originates successful North America, via parts similar engines and axles, earthy materials specified arsenic steel, oregon assembly labour.

Tariffs could besides impact Chrysler’s genitor institution Stellantis, which produces heavy-duty Ram trucks and commercialized vans successful Mexico. Stellantis had been lobbying the White House not to enforce steep tariffs connected its Mexican-made trucks.

Sweden’s Volvo Group is gathering a $700m heavy-truck mill successful Monterrey, Mexico, owed to commencement operations successful 2026.

Mexico is location to 14 manufacturers and assemblers of buses, trucks, and tractor trucks, and 2 manufacturers of engines, according to the US International Trade Administration.

Mexico opposed caller tariffs, telling the US Commerce Department successful May that each Mexican trucks exported to the US person connected mean 50 percent US content, including diesel engines.

Last year, the US imported astir $128bn successful dense conveyance parts from Mexico, accounting for astir 28 percent of full US imports, Mexico said.