US President Donald Trump has announced a 25% tariff on imports of medium and heavy-duty trucks starting November 1. The measure is aimed at protecting American manufacturers from foreign competition, including from Mexico, Canada and the EU.
Trump imposes 25% tariff on truck imports: a blow to Mexico and the EU
President Donald Trump has announced the introduction of a 25% tariff on all medium and heavy-duty trucks imported into the US, starting November 1. This is a significant increase in trade policies aimed at protecting domestic manufacturers and reducing dependence on foreign imports.
Last month, Trump said that the tariff increase was intended to protect companies such as Peterbilt, Kenworth (both owned by Paccar) and Freightliner (Daimler Truck).
Who will be hit hardest
The new tariffs will affect trucks, buses, tractor-trailers, garbage trucks and school buses.
According to the government, Mexico is the largest exporter of such vehicles to the United States – imports from there have tripled since 2019 to about 340,000 units a year.
The tariff hike could affect:
- Stellantis, which makes Ram Trucks in Mexico;
- Volvo Group, which is building a $700 million plant in Monterrey;
- Canadian and European suppliers.
Mexico opposed the decision, noting that on average 50% of the parts in Mexican-made trucks are of American origin.
Business position and possible consequences
The US Chamber of Commerce warned that the new tariffs could complicate relations with allies.
The top five truck suppliers are Mexico, Canada, Japan, Germany, and Finland, none of which pose a threat to U.S. national security.
Under the USMCA, vehicles are exempt from tariffs if 64% of their value comes from North America.
The new rules could undermine that exemption and raise the price of large trucks for American businesses.
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