Trump Imposes New Tariffs on Heavy Truck Imports to Protect U.S. Manufacturers

The administration of U.S. President Donald Trump has announced new tariffs on heavy truck imports, effective October 1, citing national security concerns and the need to protect domestic manufacturers from “unfair foreign competition.”

The new duties are expected to benefit U.S. truck makers such as Paccar-owned Peterbilt and Kenworth, and Daimler Truck’s Freightliner, Trump said last month when first outlining the plan.

According to Reuters, the move could affect imports from key trade partners, including Mexico, Canada, Japan, Germany, and Finland — countries the U.S. Chamber of Commerce described as “allies or close partners posing no national security threat.”

Under existing trade deals with Japan and the European Union, the United States applies a 15% tariff on light-duty vehicles, though it remains unclear if the same rate will apply to heavy trucks. The Trump administration has also allowed automakers to deduct the value of U.S.-made components from tariffs on light-duty vehicles assembled in Canada and Mexico.

Impact on Trade and Industry

The new tariffs will cover a wide range of large vehicles — including delivery trucks, garbage trucks, public utility vehicles, buses, and tractor-trailer rigs.

Mexico, the largest exporter of medium- and heavy-duty trucks to the U.S., could be hit hardest. Imports of such vehicles from Mexico have tripled since 2019 to about 340,000 units, according to government data.

Under the USMCA trade agreement, heavy-duty trucks can move tariff-free if at least 64% of their value originates in North America. However, the new measure could disrupt established supply chains, especially for manufacturers like Stellantis, which builds Ram trucks and commercial vans in Mexico, and has reportedly lobbied against the tariffs.

Sweden’s Volvo Group is also investing $700 million in a heavy-truck plant in Monterrey, Mexico, set to open in 2026, underscoring Mexico’s growing importance as a manufacturing hub for commercial vehicles.

Mexico Pushes Back

Mexico has opposed the tariff plan, arguing that its exports already contain significant U.S. content. In a submission to the U.S. Commerce Department, Mexican officials said trucks exported to the U.S. have, on average, 50% American-made components, including engines and steel.

In 2024 alone, the U.S. imported $128 billion worth of heavy vehicle parts from Mexico, representing about 28% of all U.S. imports in that category, according to the U.S. International Trade Administration.