Overview
- The measures cover all Class 3–8 medium- and heavy-duty trucks, with buses included under a separate 10% levy.
- Trucks that qualify for preferential treatment under the USMCA are exempt from the additional ad valorem duty, a carve-out that does not extend to buses.
- U.S. assemblers and engine makers can claim a 3.75% annual import-adjustment offset for medium- and heavy-duty vehicles for five years, with a separate 3.75% production credit extended through 2030.
- Mexico is the largest source of these vehicles for the U.S. market, followed by Japan, Germany, Canada and Finland, and officials have indicated some partners could face lower rates under separate arrangements.
- The UAW welcomed the move as a boost for domestic manufacturing, while the U.S. Chamber of Commerce and the American Trucking Associations warned of higher costs, with GM and Ford citing multibillion-dollar tariff exposure.