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Presidential·Proclamation

Trump Moves to Impose 25% Tariff on Imported Heavy Trucks and Parts Starting November 1

Adjusting Imports Of Medium- And Heavy-Duty Vehicles, Medium- And Heavy-Duty Vehicle Parts, And Buses Into The United States

5 months ago·View on White House

Key Points

  • President Trump is putting a new 25% tax on imported medium and heavy-duty trucks and their parts, along with a 10% tax on imported buses. These new costs start on November 1, 2025, and are meant to encourage companies to build more of these vehicles inside the United States instead of buying them from other countries.

    From policy text

    “all imports of MHDVs and the MHDVPs specified in Annex I to this proclamation, or in any action designed to address the national security threat found in this proclamation, shall be subject to a 25 percent ad valorem duty rate, except for buses and other vehicles classified in HTSUS heading 8702, which shall be subject to a 10 percent ad valorem duty rate. These tariffs shall apply to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on November 1, 2025”
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  • The government says relying on other countries for big trucks and parts like engines and batteries is a safety risk. Since trucks move 70% of the nation's food, fuel, and medical supplies, and are used by the military to move troops and weapons, the U.S. wants to make sure it can produce them at home during an emergency.

    From policy text

    “The domestic truck industry is dependent on engines, batteries, transmission shafts, castings, forgings, and other MHDVPs at a level that creates national security vulnerabilities. The supply chain for MHDVPs is much less diversified than for domestic passenger vehicles and light trucks, with significantly fewer United States producers of MHDVPs. Without a secure domestic supply chain for critical MHDVPs, a disruption of imports could strain the ability to execute national defense missions”
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  • This policy aims to help American factories and workers by making foreign-made trucks more expensive. The goal is to have 80% of all heavy trucks sold in the U.S. be made by American companies. While this could create more local jobs, it might also lead to higher prices for businesses that need to buy new delivery trucks or school buses.

    From policy text

    “the goal of the adjustment of MHDV imports should be a long-term stabilization of United States-produced MHDVs‘ market share at approximately 80 percent in order to achieve the adjustments’ national security objective.”
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  • Companies that build their trucks in the United States can get special tax breaks to help lower their costs. There are also special rules for parts coming from Canada and Mexico through existing trade agreements, as long as the companies can prove how much of the vehicle was actually made in North America.

    From policy text

    “For MHDVs, except for buses and other vehicles classified in HTSUS heading 8702, that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), importers of such products may submit documentation to the Secretary identifying the amount of United States content in each model imported into the United States.”
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Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

State Impacts

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

What Happens Next

Projected impacts based on AI analysis

Late 2025 to early 2026

Import adjustment offset program for U.S.-based manufacturers becomes available

Companies that build trucks in the United States can apply for credits worth 3.75% of their U.S. production value to offset tariff costs on imported parts, giving domestic assemblers a competitive advantage through October 2030.

2026 and beyond

Commerce Department may expand tariffs to cover additional truck parts

The Secretary of Commerce has authority to add more vehicle parts to the tariff list over time, meaning costs could increase further for importers and businesses as the government identifies additional components it wants produced domestically.

Source Information

Signed By

Document Type

Presidential Proclamation

Official Title

Adjusting Imports Of Medium- And Heavy-Duty Vehicles, Medium- And Heavy-Duty Vehicle Parts, And Buses Into The United States

Analysis generated by AI. Always verify with official sources.