Trump Imposes 25% Tariffs on Imported Heavy Trucks, Expands Auto Production Credits

U.S. President Donald Trump on Friday signed executive orders imposing new 25% tariffs on imported medium- and heavy-duty trucks and parts, effective November 1, citing national security concerns. The move aims to boost domestic manufacturing but is expected to impact Mexico most severely, as it remains the largest exporter of such vehicles to the United States. The tariffs also include a 10% levy on imported buses, broadening the administration’s protectionist trade stance.

To offset the impact of import costs, Trump expanded credits for U.S. auto and engine production, granting automakers a 3.75% credit on the suggested retail price of domestically assembled vehicles through 2030. The revised credit applies to vehicle and engine production as well as medium- and heavy-duty trucks, encouraging manufacturers such as GM, Ford, Toyota, Stellantis, and Tesla to strengthen U.S.-based operations. Ford CEO Jim Farley welcomed the move, saying it would make parts more affordable and help “level the playing field” with imports.

The new tariffs cover all Class 3 through Class 8 trucks — including large pickups, cargo trucks, and tractors for 18-wheelers — benefiting U.S. producers like Peterbilt, Kenworth, and Freightliner. However, the U.S. Chamber of Commerce criticized the decision, warning it could strain trade with allies such as Mexico, Canada, Japan, and Germany. The auto industry, already burdened by previous rounds of steel, aluminum, and parts tariffs, faces billions in additional costs, with GM estimating up to $5 billion and Ford around $3 billion in tariff-related expenses this year.

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