Image Credit: X account @WhiteHouse
Trump Imposes Tariffs on Trucks, Extends Auto Relief
President Donald Trump has signed a proclamation imposing 25% tariffs on imports of medium and heavy-duty trucks and parts, along with a 10% duty on buses. The tariffs will take effect from November 1. At the same time, Trump extended tariff relief measures for U.S. automakers until 2030.
Relief Program for Automakers
Under the revised scheme, automakers assembling vehicles in the U.S. can claim a 3.75% credit based on the retail price of a vehicle. This is intended to offset costs from imported parts. The program will also be expanded to include truck and engine manufacturers.
National Security Grounds
The administration justified the new tariffs on national security grounds, saying they are meant to boost domestic manufacturing and shield U.S. companies from unfair competition. Unlike trucks, buses will not qualify for exemptions under trade agreements.
Impact on Supply Chains
Analysts have cautioned that the move could raise costs across construction, logistics, and transportation industries. Given the interconnected supply chains of the U.S., Mexico, and Canada, disruptions may occur despite some exemptions under the US-Mexico-Canada trade deal.
What Comes Next
Industry reactions are expected in the coming weeks, particularly from suppliers and truck makers in Mexico and Europe. The outcome will depend on how effectively exemptions are applied and whether the offset program eases cost pressures for U.S. companies.
