Late Friday evening, President Trump issued a proclamation announcing that Section 232 tariffs will be imposed on imports of medium- and heavy-duty trucks (MHDVs), their parts, and buses. A 25% tariff will apply to Classes III through VIII trucks, including large pick-up trucks, moving trucks, cargo trucks, dump trucks, and tractors for eighteen-wheelers, as well as their parts. Buses classified under HTSUS heading 8702, including school buses, transit buses, and motor coaches, will face a 10% tariff. The tariff on truck parts will cover key components such as engines, transmissions, tires, and chassis. Japanese and European truck and engine parts will be subject to a 15% all-inclusive rate. These duties will be imposed in addition to any other applicable tariffs, taxes, or fees and will take effect on goods entered for consumption or withdrawn from warehouse on or after 12:01 a.m. EST on November 1, 2025.
For medium and heavy-duty trucks qualifying for preferential tariff treatment under USMCA, the 25% tariff will apply only to the non-U.S. content. Trucks that do not qualify for preferential tariff treatment will be subject to the tariff on the full vehicle value. Bus imports are not eligible for USMCA preferential treatment, and the entire value will be subject to the 10% tariff. Truck and bus parts imported from Canada or Mexico that meet USMCA rules of origin will continue to enter duty-free, with future tariffs applied to their non-U.S. value once a methodology is established. Knock-down kits and equivalent parts will not be eligible for preferential treatment.
An import adjustment offset equal to 3.75% of the aggregate value of all MHDVs assembled in the United States will be available to domestic manufacturers from November 1, 2025, through October 31, 2030. This offset reflects the 25% tariff on parts accounting for 15% of a vehicle’s value and will also apply to heavy-duty engine manufacturers. Knock-down kits will not be eligible for offsets. Aluminum or steel imported from Canada or Mexico that was smelted and cast or melted and poured in those countries may be subject to a reduced 25% tariff, rather than 50%, up to a volume capped by domestic production expansion levels. This reduced tariff will also apply to heavy truck and bus manufacturers.
The tariffs will apply to used and remanufactured trucks and buses manufactured within the last 25 years, while older vehicles will be exempt. Products subject to the new tariffs that are admitted into U.S. foreign trade zones on or after the effective date must be admitted under privileged foreign status and will be subject to applicable duties upon entry for consumption. Tariff stacking rules will align with Proclamation 10908, and products will remain subject to these tariffs even if no duties are payable due to USMCA benefits, offset adjustments, or other tariff reductions.
The proclamation harmonizes the Section 232 tariff programs for trucks and automobiles, extending the import adjustment offset program for automobile manufacturers through 2030. Automobile producers will be able to offset a portion of tariffs on automobile parts equal to 3.75% of the MSRP of automobiles they assemble in the United States. This percentage reflects the duty that would be owed when a 25% tariff is applied to 15% of the value of a U.S.-assembled automobile.
Products subject to tariffs under this proclamation will not be subject to additional or existing sectoral tariffs on steel, aluminum, copper, automobiles and automobile parts, and lumber. They will also not be subject to reciprocal tariffs or the tariffs imposed on Canada, Mexico, Brazil, or India.
Full details can be found at the following links:
Fact Sheet: Imports of Medium and Heavy-Duty Vehicles, Parts, and Buses