October 6,2025
RED FM News Desk
U.S. President Donald Trump announced Monday that starting November 1, all medium- and heavy-duty trucks imported into the United States will face a 25% tariff — a major step in his push to shield American manufacturers from foreign competition.
Last month, Trump had proposed similar tariffs on heavy truck imports beginning October 1, citing national security concerns and saying the move was meant to protect U.S. truck makers from “unfair foreign competition.” He said the measure would benefit domestic manufacturers such as Peterbilt and Kenworth, owned by Paccar, as well as Daimler Truck’s Freightliner.
Under current trade agreements with Japan and the European Union, the U.S. applies a 15% tariff on light-duty vehicles, though it remains unclear if the same rate will apply to larger vehicles. The administration also allows manufacturers to deduct the value of U.S.-made components from tariffs on light-duty vehicles built in Canada and Mexico.
The new tariff category covers a wide range of vehicles, including delivery, garbage, utility, and transit trucks, school and shuttle buses, tractor-trailers, semi-trucks, and other heavy-duty vocational vehicles.
The U.S. Chamber of Commerce had previously urged the Commerce Department to avoid imposing new tariffs, noting that the top five sources of truck imports — Mexico, Canada, Japan, Germany, and Finland — are U.S. allies and do not pose a national security threat. Mexico remains the largest supplier of medium- and heavy-duty trucks to the U.S., with imports tripling since 2019 to about 340,000 vehicles, according to government data.
Under the USMCA trade agreement, such trucks are exempt from tariffs if at least 64% of their value originates in North America through parts, materials, or labor.
The tariffs could impact automakers like Stellantis, which produces Ram heavy-duty trucks and commercial vans in Mexico and had lobbied against the move. Meanwhile, Sweden’s Volvo Group is building a $700 million heavy-truck plant in Monterrey, Mexico, set to open in 2026.
Mexico, which has 14 truck and bus manufacturers and two engine makers, has opposed the tariffs. In May, it told the U.S. Commerce Department that trucks exported to the U.S. contain on average 50% American-made content, including diesel engines.
Loading ...
