The Trump administration in the US will impose 25% tariffs on imported parts for medium- and heavy-duty trucks as well as a 10% duty on buses. However, it has also extended a key tariff reprieve for US automakers.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The new tariffs start on 1 November. Truck imports that qualify for relief under the US trade agreement with Mexico and Canada (USCMA) will be exempt from the charges on parts.
Trump’s order means automakers eligible for a credit equal to 3.75% of the suggested retail price for US assembled vehicles through 2030 (rather than 2026) to offset the import tariffs on parts.
The new tariffs cover all Class 3 through Class 8 trucks, including large pick-up trucks, moving trucks, cargo trucks, dump trucks, and tractors for 18-wheelers.
Bloomberg reported that the administration is also planning an additional carveout for companies that make engines for passenger vehicles as well as medium- and heavy-duty trucks in the US, which would be based on the existing offset program for completed vehicles but will not take effect immediately.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe latest developments are part of the US administration’s strategy to encourage more manufacturing in the US and reduce the level of imports. However, there will also be worries that automakers may pass on the higher costs and increase prices to US trucks customers.
Bloomberg noted that the USMCA relief could soften the tariff impacts on Ram pickups made by Stellantis in Mexico.
The extension of the relief period is seen as a concession to US companies who have complained that cars made in Japan are subject to lower 15% tariffs under a trade agreement the country has struck with the US, rather than the 27.5% rate they were previously charged.
