U.S. Imposes 25% Tariff on Medium and Heavy Trucks, 10% on Buses, Effective Nov. 1

Overview

• The order covers key truck components such as engines, transmissions, tires and chassis, with a temporary parts carve‑out allowing up to 15% of a vehicle’s value to be imported without the new duty for five years.
• Trucks assembled in Canada or Mexico may receive partial relief if they meet USMCA rules, while buses from those countries face the full 10% tariff.
• A 3.75% credit for vehicles, engines and trucks built in the United States is extended through 2030 to offset costs tied to tariffs on imported parts.
• Products taxed under the decree will not also be subject to other sectoral or reciprocal tariffs, and vehicles from countries with existing U.S. trade deals such as Japan and South Korea remain at lower rates.
• The Commerce Department will define application details, with a senior official saying price increases are not expected as analysts note most U.S. truck imports come from Mexico and Canada.