Last month, US President Donald Trump said he would introduce new tariffs to protect the production of medium-sized and heavy-duty trucks from outside competition.
Released on October 6, 2025
US President Donald Trump said all medium-sturdy trucks imported into the country will face a 25% tariff rate starting November 1st.
Trump made the announcement Monday.
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Last month, Trump said he will face a new job on October 1 for national security reasons, saying the new tariffs will protect manufacturers from “unfair external competition,” and that the move will benefit companies such as Paccar-owned Peterbilt, Kenworth and Daimler Truck-owned Freightliner.
Under the trade deal between Japan and the European Union, the US has agreed to a 15% tariff on lightweight vehicles, but it is not clear whether the rate will be set for heavy vehicles.
The Trump administration has also allowed producers to deduct the value of US components from tariffs paid on lightweight vehicles assembled in Canada and Mexico.
Large vehicles include delivery trucks, garbage pickups and utility services. Transits, shuttles, and school buses. Tractor trailer truck. Semi-Trucks; and sturdy professional vehicles.
Impact on allies
The US Chamber of Commerce has previously urged the US Department of Commerce not to impose tariffs on new trucks, saying that the top five sources of imports are Mexico, Canada, Japan, Germany and Finland.
Mexico is the largest exporter of medium and heavy-duty trucks to the United States. According to government statistics, a survey released in January showed that imports of these heavy vehicles from Mexico have tripled 340,000 times since 2019.
Under the US-Mexico-Canada Agreement (USMCA) trade agreement, medium and heavy-duty trucks are freed from tariffs, with at least 64% of the value of heavy trucks being through components such as engines and axles, and raw materials such as steel.
The tariffs could also affect Stellantis, the parent company of Chrysler, which produces heavy-duty ram trucks and commercial vans in Mexico. Stellantis was lobbying the White House to avoid sudden tariffs on Mexican-made trucks.
Swedish Volvo Group began operations in 2026, and is building a $700 million sturdy factory in Monterrey, Mexico.
According to the US International Trade Agency, Mexico has 14 manufacturers and two manufacturers: bus, truck, tractor truck and engine.
Mexico opposed the new tariffs and told the US Department of Commerce in May that all Mexican trucks exported to the US have an average of 50% of US content, including diesel engines.
Last year, the US imported nearly $128 billion in heavy Mexican vehicle parts, accounting for around 28% of the total US imports, Mexico said.
