Effective Oct. 17, the Trump Administration has used Section 232 to impose a 25% tariff on imports of medium- and heavy-duty trucks and truck parts. The proclamation also sets a 10% tariff on imports of buses, including school buses, transit buses, and motor coaches.
- Medium- and heavy-duty trucks include Class 3 to Class 8 vehicles, like large pick-up trucks, moving trucks, cargo trucks, dump trucks, and tractors for eighteen-wheelers.
- For medium- and heavy-duty trucks that do not qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), the tariff will apply to the full value of the vehicle. For medium- and heavy-duty trucks that qualify for preferential tariff treatment under the USMCA, the tariff will only apply to the value of the non-U.S. content in the vehicle.
- The tariff on medium- and heavy-duty truck parts will apply to key parts, including engines, transmissions, tires, and chassis.
- USMCA-compliant medium- and heavy-duty truck parts will not be subject to tariffs imposed in the Proclamation until the Commerce Secretary, in consultation with Customs and Border Protection (CBP), establishes a process to apply tariffs to the non-U.S. content of the parts.
