On October 17, President Donald Trump issued a presidential proclamation announcing additional tariffs of 25% on medium and heavy-duty trucks (Classes 3–8) and key components such as engines, transmissions, tires, and chassis, as well as a 10% additional tariff on imported school buses, public buses, and long-distance coaches.
On the other hand, he stated that tariff relief measures for auto manufacturers producing in the U.S. would be extended. For trucks that do not meet the requirements of the U.S.-Mexico-Canada Agreement (USMCA), a 25% tariff will be imposed on the total vehicle price. For USMCA-compliant trucks, only non-U.S.-made components will be subject to tariffs. Until a tariff collection process is established for non-U.S.-made parts in USMCA-compliant trucks, these components will temporarily not be taxed.
The proclamation includes tariff relief measures for parts used by automakers in U.S. production. From 2025 to 2030, truck manufacturers assembling vehicles in the U.S. will receive a 3.75% reduction in tariff burden based on the truck’s price. Suppliers assembling engines in the U.S. will also enjoy the same relief. For automakers, the 3.75% tariff burden reduction (based on the expected retail price of vehicles assembled in the U.S.) will be extended until 2030.
The products subject to tariffs under this announcement fall outside the scope of existing industry-specific tariffs on steel, aluminum, copper, automobiles and auto parts, and lumber. Additionally, imports from Canada, Mexico, Brazil, and India are exempt from these new tariffs, ensuring no double taxation will occur.
The new additional tariffs will take effect on November 1. This measure aims to boost domestic production of trucks and truck parts in the U.S., strengthen the economic foundation, and enhance military preparedness. The decision follows an investigation by the U.S. Secretary of Commerce under Section 232 of the Trade Expansion Act, which concluded that such imports threaten national security.