More details have emerged on US plans to implement 25% tariffs on medium- and heavy-duty vehicles (MHDV) from 1 November, with some companies likely to be eligible for offsets.
A proclamation issued by US President Donald Trump on 17 October, outlines that the 25% tariff will cover Class 3 to Class 8 vehicles such as large pick-up trucks, moving trucks, cargo trucks, dump trucks and tractors for eighteen-wheelers. Meanwhile, buses will face a 10% levy.
For trucks that do not qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), the tariff will apply to the full value of the vehicle. For trucks that do qualify under the USMCA, the tariff will only apply to the value of the non-US content in the vehicle.
However, the White House confirmed on 17 October that USMCA-compliant medium- and heavy-duty truck parts will not be subject the tariffs until the Secretary of Commerce and US Customs and Border Protection, establish a process to apply tariffs to the non-US content of the parts.
For MHDVs assembled in the US, manufacturers shall be eligible to receive an import adjustment offset of 3.75% from 1 November 2025 to 31 October 2030. Recognising that the truck and automobile industries share many common suppliers and supply chains, Trump has also extended the period carmakers can apply for 3.75% tariff offsets until April 2030.
Trucks covered under the new measures will not be subject to additional or existing sectoral tariffs such as those on steel, aluminium and copper.
The proclamation also authorises reducing tariffs “by up to half” of the applicable rate for aluminium or steel producers that operate production facilities in Canada or Mexico and supply US automobile or MHDV manufacturers.
The White House justified the tariffs by noting that a disruption to imports of MHDVs “could strain the ability to execute national defence missions and critical infrastructure requirements”.
Currently, 43% of Class 4 to Class 8 MHDVs sold on the US market are imports.
“Trucks and buses of all kinds are indispensable to military readiness, military troop movements, disaster response, and the continuity of American critical infrastructure and economic stability, moving over 70% of the Nation’s freight, including essential goods like food, fuel, and medical supplies,” the White House said.
