Source: Manufacturing Dive
Date: 20th October 2025

New duties target imported heavy-duty vehicles and parts, with limited cost offsets for compliant manufacturers.

The U.S. government has officially implemented new tariffs on imported trucks and buses, introducing a 25% duty on heavy- and medium-duty trucks and a 10% levy on buses, effective November 1 under an executive order. The new duties extend to key vehicle components, including engines, transmissions, and chassis, but will not stack on previously enacted tariffs or country-specific levies. The measure applies broadly to Class 3 through Class 8 vehicles used in freight and passenger transport, encompassing school buses, coaches, and commercial cargo trucks.

The administration cited national security and infrastructure resilience as justifications, highlighting the critical role of trucks in transporting essential goods, such as fuel, food, and medical supplies. The order includes a mechanism for qualifying manufacturers to offset a portion of the tariff burden through compliance with the United States-Mexico-Canada Agreement (USMCA) and domestic assembly provisions. Truck and bus manufacturers completing final assembly in the U.S. may recover up to 3.75% in tariff costs annually over five years, while automakers producing vehicles domestically will enjoy similar offsets until 2030. The Commerce Department has been tasked with establishing eligibility criteria and a review process for these exemptions.

Additionally, the executive order authorizes the Commerce Department to reduce certain existing 50% levies on steel and aluminum imports by as much as half for goods originating from Canada or Mexico that qualify under USMCA rules of origin. The directive follows a Section 232 investigation into medium- and heavy-duty vehicles, marking another round of trade actions under the administration’s broader economic security framework.

For shippers, importers, and exporters, the new tariffs could lead to higher equipment and logistics costs in the short term, particularly for fleets reliant on imported trucks or components. Importers may face increased capital expenditures for replacement vehicles, while exporters of vehicle parts could encounter supply chain realignments as manufacturers adjust sourcing strategies to maintain USMCA compliance.