Starting November 1, a 25% tariff will be applied to all medium- and heavy-duty trucks imported into the United States. This marks a significant increase in tariffs aimed at protecting domestic manufacturers from foreign competition.
Previously, it was announced that new duties on heavy truck imports would begin earlier in October, justified on national security grounds, with the goal of supporting U.S. companies involved in the production of these vehicles.
Trade agreements with Japan and the European Union currently set tariffs for light-duty vehicles at 15%, but it remains unclear if this rate will apply to larger vehicles. Additionally, manufacturers have been allowed to subtract the value of U.S.-made components from tariffs on light-duty vehicles assembled in Canada and Mexico.
Medium- and heavy-duty vehicles encompass a wide range of vehicles including delivery trucks, garbage trucks, utility trucks, transit and school buses, tractor-trailers, semi-trucks, and vocational heavy-duty trucks.
The U.S. Chamber of Commerce previously recommended against imposing new truck tariffs, pointing out that the main import sources—Mexico, Canada, Japan, Germany, and Finland—are close partners of the United States and do not pose a national security threat.
Mexico is the largest exporter of medium- and heavy-duty trucks to the U.S., with imports tripling since 2019 to approximately 340,000 units. Under the USMCA trade agreement, trucks qualify for tariff-free entry if at least 64% of their value comes from North America, including components like engines, axles, steel, or assembly labor. The tariffs could impact manufacturers such as Stellantis, which produces heavy-duty Ram trucks and commercial vans in Mexico and has expressed concerns about the tariffs.
Sweden’s Volvo Group is investing $700 million to build a heavy-truck factory in Monterrey, Mexico, expected to begin operations in 2026.
Mexico hosts 14 manufacturers and assemblers of buses, trucks, and tractor-trailers, along with two engine manufacturers. Mexican officials have opposed the tariffs, noting that trucks exported to the U.S. contain on average 50% U.S.-made components, including diesel engines.
In the previous year, the U.S. imported nearly $128 billion worth of heavy vehicle parts from Mexico, representing about 28% of total U.S. imports in this category.
