President Donald Trump signed a proclamation on Friday imposing steep new tariffs on imported medium- and heavy-duty trucks. The new tariff of 25 percent on trucks and truck parts, and 10 percent on buses, will take effect on November 1, 2025.
The proclamation, issued under Section 232 of the Trade Expansion Act of 1962, cites heavy reliance on foreign suppliers for trucks and essential vehicle parts as a security threat. It follows months of hints from the president about new trade measures designed to shield American truck makers from foreign competition.
“Our great large truck company manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions,” Trump said in a statement announcing the decision.
According to the White House fact sheet, the order applies to medium- and heavy-duty trucks and vehicle parts not already covered under existing steel, aluminum, copper, or auto tariffs. The administration argues that these vehicles are critical for military readiness, troop transport, disaster response, and economic stability.
Commerce Secretary Howard Lutnick’s investigation found that imports of medium- and heavy-duty vehicles account for 43 percent of U.S. sales. Imports of the heaviest-duty trucks make up 50 percent of the market. Officials say that dependence on foreign suppliers for engines, transmissions, and other components could leave the country vulnerable during crises.
Under the new tariff structure, U.S. manufacturers assembling trucks domestically will also benefit from an import adjustment offset of 3.75 percent to lower their parts costs through 2030. The measure aims to boost domestic production and stabilize the U.S. market share at roughly 80 percent.
Industry reaction came quickly. Jim Farley, CEO of Ford Motor Company, welcomed the move, calling it “a really big deal for our country.” Mexico, which exports more than 300,000 medium- and heavy-duty trucks to the U.S. annually, is expected to be the most affected trade partner. Canada and Stellantis’ Ontario plant are also facing production shifts following the announcement.
Foreign trade negotiations could now face additional tension. Canada and Mexico issued a joint statement last month saying they would work together on “a more prosperous, sustainable and inclusive future” amid new U.S. tariff measures.
The White House maintains the tariffs are designed to strengthen supply chains, create high-quality American jobs, and support national defense. The duties will remain in place until they are reduced or revoked by future action.