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Trump Imposes 25% Tariff on Imported Trucks, Exempts USMCA Partners
U.S. President Donald Trump
U.S. President Donald Trump has signed a proclamation imposing a 25% tariff on imported medium- and heavy-duty trucks, a move aimed at bolstering domestic manufacturing and shielding American companies from foreign competition. The measure, set to take effect on November 1, 2025, also includes a 10% tariff on imported buses, such as school and city buses.
In a significant carveout, vehicles traded under the Canada-U.S.-Mexico Agreement (USMCA) will be exempt from the new duties, ensuring that North American trade flows remain largely unaffected. The administration also extended tariff relief on certain auto parts until 2030, providing U.S. automakers with additional cost flexibility.
Officials said the tariffs are designed to encourage manufacturers to build more vehicles in the United States, while discouraging reliance on foreign-made truck parts. The policy is expected to benefit American companies such as PACCAR and Ford, while potentially raising costs for importers outside North America.
The announcement follows months of speculation and debate over the administration’s trade strategy, with Trump framing the move as a step toward “protecting U.S. jobs and industries from unfair outside competition”.
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