Trump Imposes 25% Tariff on Imported Trucks from November

• President Donald Trump announced a 25% tariff on all medium- and heavy-duty trucks imported into the U.S., effective November 1.
• The move is aimed at protecting domestic truck manufacturers such as Peterbilt, Kenworth, and Freightliner from what Trump called “unfair outside competition.”
• Industry leaders and U.S. allies have criticised the decision, warning it could strain trade relationships and increase costs for American businesses.

President Donald Trump has confirmed that all imported medium- and heavy-duty trucks will face a 25% tariff starting November 1, escalating his trade policy to protect U.S. manufacturers.

The measure, originally scheduled for October 1, targets foreign-made trucks on what the administration calls national security grounds. Trump said the higher duties are intended to shield companies such as Paccar-owned Peterbilt and Kenworth, and Daimler Truck’s Freightliner, from “unfair outside competition.”

Under current trade agreements with Japan and the European Union, the U.S. levies a 15% tariff on light-duty vehicles. It remains unclear whether similar exemptions will apply to heavier models under the new rules. The Trump administration has also maintained provisions allowing producers to deduct the value of U.S. components from tariffs on light-duty vehicles assembled in Canada and Mexico.

The new tariffs will affect a wide range of commercial and public service vehicles, including delivery and garbage trucks, school buses, and heavy-duty tractor-trailers.

The U.S. Chamber of Commerce previously urged the administration not to impose these new tariffs, stressing that America’s top import sources for such vehicles, Mexico, Canada, Japan, Germany, and Finland, are long-standing allies that pose no national security risk.

Mexico, the largest exporter of heavy-duty trucks to the U.S., warned the move could disrupt supply chains. Imports from Mexico have tripled since 2019, now totalling around 340,000 units. Under the USMCA trade agreement, trucks can move tariff-free if at least 64% of their value originates in North America through parts, materials, or labour.

The tariffs could particularly impact Stellantis, which manufactures Ram trucks and commercial vans in Mexico. The company has reportedly lobbied the White House to avoid such steep import penalties.

Sweden’s Volvo Group also faces uncertainty as it continues construction on a $700 million heavy-truck plant in Monterrey, Mexico, set to open in 2026.

Mexico’s government opposed the tariffs, noting that its exported trucks typically contain about 50% U.S.-made content, including diesel engines and components. Last year, Mexico exported nearly $128 billion in heavy vehicle parts to the U.S., accounting for 28% of total imports in that category.

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