On Friday, President Donald J. Trump signed a Proclamation invoking Section 232 of the Trade Expansion Act of 1962 (Act) to impose tariffs on imports of medium- and heavy-duty vehicles and parts, and buses, to bolster American industry and protect national security.
- A 25% duty will be applied to all imported medium- and heavy-duty trucks (covering all Class 3 to Class 8 vehicles) and the parts used to manufacture them.
- A 10% tariff will be levied on all imported buses, including school buses, transit buses, and motorcoaches.
The administration stated that the tariffs on imported trucks are a direct response to foreign competition, designed to shield U.S. vehicle manufacturers. According to official statements, by making imported vehicles and parts more expensive, the policy incentivizes companies to produce and source materials within the United States.
Senior officials emphasized that the goal is to “incentivize domestic manufacturing of vehicles” and support American labor with well-paying jobs.
Recognizing that not all vehicle components can be sourced domestically, the administration also introduced a unique tariff credit for automakers. This program is designed to offset costs for manufacturers who import necessary parts but assemble the final vehicles in the U.S. with American workers.
The credit will be calculated based on the specific portion of imported parts in a vehicle, ensuring that companies committed to U.S. manufacturing are not penalized for essential global supply chain needs. According to officials, this measure aims to strike a balance between protecting domestic industry and acknowledging the realities of modern vehicle production.