The White House on Oct. 17 released additional details of the planned tariffs on heavy-duty trucks and truck parts starting Nov. 1, including an offset program aimed at encouraging more manufacturing in the United States.
According to a fact sheet posted on the White House’s website, the 25% tariff applies to Classes 3-8 trucks and truck parts, including heavy-duty tractors, large pick-up trucks, moving trucks, cargo trucks, and dump trucks.
For trucks that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), the tariff will only apply to the value of the non-U.S. content. Engines, transmissions, chassis, and tires are among the components subject to the tariffs.
However, tariffs on USMCA-compliant truck parts won’t be formally imposed until after the Commerce Department “establishes a process to apply tariffs to the non-U.S. content of the parts.” The White House fact sheet did not provide any information on that timeline.
For all other imported trucks, the tariff will apply to the full value of the vehicle.
Incentivizing U.S. production with offset program
The White House said it was offering an offset to a portion of the tariffs as a way to incentivize domestic truck production. The tariff relief is equal to 3.75% of the aggregate value of all trucks assembled in the United States from 2025-2030.
“This percentage reflects the duty that would be owed when a 25% tariff is applied to 15% of the value of a U.S.-assembled medium- and heavy-duty truck,” the White House said. A similar program will be established for engine manufacturers.
National security cited for tariffs
The tariffs follow the Secretary of Commerce’s finding that truck imports threaten to impair the national security of the United States. The White House said imports of heavy- and medium-duty trucks account for about 43% of the market, which has weakened the domestic supply chain.
“In a time of crisis, America would need adequate, reliable domestic manufacturing capacity for medium- and heavy-duty trucks, medium- and heavy-duty truck parts, and buses. Only factories here, on American soil, subject to American law, can provide that kind of reliable capacity,” the White House said.
The White House also confirmed a 10% tariff on imports of buses, including school buses, transit buses, and motor coaches.
