President Donald Trump signed a proclamation on October 17 imposing a 25% tariff on imported medium and heavy trucks, sharpening his broader Section 232 trade program aimed at shifting production and jobs back to the United States.
The duty takes effect at 12:01 a.m. on November 1 and comes on top of any other applicable levies.The measure includes targeted relief for North American supply chains.
Trucks that meet United States-Mexico-Canada Agreement rules of origin may avoid the full hit if importers document the value attributable to U.S. content.
The 25% duty is applied only to the portion of a vehicle’s value that is not U.S. content, according to the proclamation. Buses are carved out at a lower 10% rate.
The White House paired the new truck duty with extensions to an offset program that credits U.S.-assembled vehicles and engines through 2030.
This framework is designed to soften the blow of parts tariffs for manufacturers that build in the United States, and it signals the administration’s intent to keep investment anchored domestically.
Customs and Border Protection will police compliance, with the proclamation warning that inaccurate declarations of U.S. content can trigger the full 25% duty on entire models until corrections are verified.
Mexico and Canada are deeply integrated into North American truck production, and the content-based relief for USMCA compliant models could preserve some trade flows while still nudging more value-added work stateside.
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Fleet buyers and logistics firms will watch for potential price pass throughs as the market digests the new costs.
The administration grounded the move in national security findings under Section 232 and left the door open to further adjustments.
The Commerce Department was directed to expand or refine coverage of truck parts as needed, and to issue guidance that implements the content based calculations for USMCA qualifying vehicles.
