United States imposes 25% tariffs on medium- and heavy-duty vehicle imports

President Trump on October 17, 2025, signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose tariffs on imports of medium- and heavy-duty vehicles, parts, and buses, effective November 1, 2025.

According to the White House fact sheet, this proclamation introduces a 25% tariff on imports of medium- and heavy-duty trucks and truck parts, including engines, transmissions, tires, and chassis. Trucks qualifying for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA) will see tariffs applied only to the non-U.S. content. A 10% tariff will be imposed on bus imports, including school buses and transit buses.

The proclamation incentivizes domestic production by offering an offset to a portion of tariffs for medium- and heavy-duty truck parts, equal to 3.75% of the aggregate value of all trucks assembled in the United States from 2025 through 2030. An equivalent offset program is established for truck engine manufacturers.

This decision follows a Section 232 investigation by the Secretary of Commerce, which found that imports of medium- and heavy-duty trucks, truck parts, and buses threaten to impair U.S. national security. Imports account for approximately 43% of trucks sold in the United States, and reliance on foreign suppliers for truck parts has weakened the domestic supply chain.