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President Donald Trump announced on Monday that all medium- and heavy-duty trucks imported into the United States will face a 25% tariff starting November 1.
Trump said the tariffs aim to protect US manufacturers from “unfair outside competition” and cited benefits for companies such as Paccar-owned Peterbilt and Kenworth, as well as Daimler Truck-owned Freightliner.
Light-duty vehicles under trade deals with Japan and the European Union face 15% tariffs, but it remains unclear whether larger trucks will receive similar treatment.
Medium- and heavy-duty vehicles include delivery trucks, garbage trucks, public utility vehicles, transit and school buses, tractor-trailers, and semi-trucks.
Mexico, the largest exporter of such trucks to the US, has seen imports triple since 2019 to roughly 340,000. Under USMCA rules, vehicles with at least 64% North American content move tariff-free.
Industry groups, including the US Chamber of Commerce, urged the Commerce Department not to impose the tariffs, noting that Mexico, Canada, Japan, Germany, and Finland pose no national security threat.
Tariffs could also affect Stellantis, which manufactures Ram trucks and commercial vans in Mexico, and Volvo, which is building a $700 million heavy-truck plant in Monterrey.
Mexico opposed the tariffs, highlighting that its exported trucks already contain, on average, 50% US components.
Last year, the US imported nearly $128 billion in heavy vehicle parts from Mexico, roughly 28% of total imports.
