Source: Supply Chain Dive
Date: 30th September 2025

Proposed 25% duty on heavy trucks could disrupt parts sourcing and test USMCA provisions.

The U.S. administration has announced plans to impose a 25% tariff on heavy trucks starting October 1, though official documentation is still pending. While the stated aim is to shield domestic truck manufacturers from external competition, most heavy-duty trucks are already produced in the United States. As a result, the tariff’s impact will likely depend on whether it extends to import truck parts, interacts with existing duties, or overrides provisions in the U.S.-Mexico-Canada Agreement (USMCA).

Industry leaders emphasise that domestic manufacturing dominates the sector, with the vast majority of Class 8 trucks and nearly 90% of medium- and heavy-duty models assembled in North America. Manufacturers argue that stacking new tariffs on top of existing levies, such as those on steel and aluminum, would drive up costs unnecessarily. Several companies have already passed higher input costs down the supply chain through surcharges, affecting carriers and fleet operators.

The broader concern is the cross-border supply chain underpinning truck manufacturing. Imports of heavy trucks from Mexico and Canada remain substantial, while parts and raw materials such as critical minerals are sourced globally. If the tariff effectively overrides USMCA, as some experts anticipate, it could strain North American trade relations and heighten costs across the industry. For shippers and logistics providers, the resulting uncertainty could complicate sourcing strategies, capacity planning, and pricing in an already complex supply chain environment.

For shippers and carriers, the proposed tariffs could result in significantly higher equipment costs, ultimately raising the total cost of road freight operations. Carriers facing increased vehicle purchase and maintenance expenses may pass these costs along through higher freight rates, while shippers could see tighter trucking capacity if fleets delay or scale back investments in new vehicles. This ripple effect has the potential to increase supply chain bottlenecks, disrupt delivery schedules, and put added pressure on industries dependent on reliable trucking networks.