President Donald Trump said all medium and heavy-duty trucks imported into the United States will face a tariff of 25% starting on Nov. 1 on Monday. This decision reflects a significant escalation in his effort to prioritize and protect U.S. companies from foreign competitors.
Just last month, Trump said heavy truck imports would face new duties on national security grounds starting Oct. 1. The new tariffs, according to the president, were implemented to protect manufacturers from “unfair outside competition.”
The move, according to Trump, would benefit U.S.-based companies.
Trade deals between Japan and the European Union added a 15% tariff on light-duty vehicles. However, it has not been made clear whether they will face the same rate for larger vehicles.
The Trump administration allowed producers to take away from the value of U.S. components from tariffs on light-duty vehicles that are assembled in Canada or Mexico.
Larger-duty vehicles include anything from delivery trucks to transit and school buses, as well as semi-trucks and tractor-trailer trucks.
In opposition to the new tariff, the U.S. Chamber of Commerce advised the Commerce Department against the new tariffs. They mentioned the top five import sources for the U.S. are Mexico, Canada, Japan, Germany and Finland, which are all “allies or close partners of the United States posing no threat to U.S. national security."
Among those countries listed, Mexico is the largest exporter of medium and heavy-duty trucks to the U.S.
Tariffs like the ones the Trump administration is attempting to impose could affect some companies, such as the Chrysler-owned Stellantis. Stellantis produces heavy-duty Ram trucks and commercial vans in Mexico.
Stellantis was discouraging the White House to stop the steep tariffs on its Mexican produced trucks.
Mexico opposed the Trump administration’s new tariffs, telling the Commerce Department in May that all trucks from Mexico have about 50% American content on average. In 2024, the U.S. imported close to $128 billion in heavy vehicle parts from Mexico, totaling close to 28% of U.S. imports.
According to the U.S. International Trade Administration, Mexico is home to 14 manufacturers of buses, trucks and tractor trucks. Mexico also has two manufacturers of engines.
[SRC] https://wpde.com/news/nation-world/trump-announces-25-tariff-on-imported-medium-and-heavy-duty-trucks-starting-november
