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Tuesday, October 07, 2025
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US to impose 25% tariffs on truck imports starting November 1

publish time

07/10/2025

publish time

07/10/2025

DCJE337
US President Donald Trump announces a 25% tariff on all medium- and heavy-duty truck imports starting November 1 to protect US manufacturers.

WASHINGTON, Oct 7:  President Donald Trump announced Monday that all medium- and heavy-duty trucks imported into the United States will face a 25% tariff beginning November 1, escalating efforts to shield U.S. manufacturers from foreign competition.

Trump had previously indicated that heavy truck imports would face new duties starting October 1, citing national security concerns and aiming to protect companies like Paccar-owned Peterbilt and Kenworth, as well as Daimler Truck-owned Freightliner.

While trade agreements with Japan and the European Union set tariffs for light-duty vehicles at 15%, it remains unclear if those rates will apply to larger trucks. The administration allows producers to deduct the value of U.S.-made components from tariffs on light-duty vehicles assembled in Canada and Mexico.

Medium- and heavy-duty vehicles subject to the tariffs include delivery trucks, garbage trucks, public utility vehicles, transit buses, shuttle buses, school buses, tractor-trailers, semi-trucks, and vocational trucks.

The U.S. Chamber of Commerce opposed the tariff move, warning the Commerce Department that the top five import sources—Mexico, Canada, Japan, Germany, and Finland—are close allies posing no national security threat.

Mexico is the largest exporter of medium- and heavy-duty trucks to the U.S., with imports tripling since 2019 to approximately 340,000 trucks annually, according to government data.

Under the USMCA trade agreement, medium- and heavy-duty trucks qualify for tariff-free entry if at least 64% of their value is sourced in North America, including parts like engines and axles, steel, or assembly labor.

The tariffs may also impact Stellantis, which produces heavy-duty Ram trucks and commercial vans in Mexico and has lobbied against the steep duties.

Sweden’s Volvo Group is investing $700 million in a heavy-truck factory in Monterrey, Mexico, set to open in 2026.

Mexico hosts 14 bus, truck, and tractor-truck manufacturers and assemblers, plus two engine manufacturers, per the U.S. International Trade Administration.

Mexico opposed the tariffs, stating in May that Mexican trucks exported to the U.S. contain on average 50% U.S.-made parts, including diesel engines.

Last year, the U.S. imported nearly $128 billion worth of heavy vehicle parts from Mexico, representing about 28% of total U.S. imports, according to Mexican officials.