The Trump administration has officially enacted new tariffs of 25% on imported medium- and heavy-duty trucks and parts, along with a 10% duty on buses, while extending a major tariff reprieve for American car manufacturers.
According to a White House fact sheet, President Donald Trump signed a proclamation on October 17 imposing the truck and bus tariffs beginning November 1, following his earlier announcement of the plan this month.
The order also extends through 2030 a tariff discount that Trump previously granted to carmakers producing and selling completed vehicles in the United States. It further sets the stage to apply a similar offset for truck duties. Imports of trucks that qualify under the U.S.-Canada-Mexico Agreement (USMCA) will be exempt, though buses will not be covered by that exemption, the fact sheet said.
In addition, the administration is introducing a new exemption for companies manufacturing engines for both passenger cars and medium- and heavy-duty trucks within the U.S. This program will be modeled on the existing offset for completed vehicles but won’t take effect immediately.
These moves underscore Trump’s balancing act between reshaping global trade and promoting domestic manufacturing. The president has used tariffs extensively as a tool to discourage imports and encourage U.S. production, but his approach also affects industries that rely on global supply chains, sometimes increasing costs even for U.S.-based manufacturers.
Truck producers and related industries have warned that higher tariffs could drive up vehicle prices, potentially impacting construction and shipping sectors. The USMCA carveout may soften the blow for Ram pickups produced in Mexico by Stellantis NV, which are part of the roughly 245,000 medium- and heavy-duty trucks imported into the U.S. last year, according to Commerce Department figures.
Under the auto-tariff relief measure, automakers are eligible for an offset equal to 3.75% of the value of their American-made vehicles, designed to cushion the impact of 25% tariffs on imported components and give firms time to shift supply chains domestically.
While the offset was originally scheduled for a two-year phaseout, the White House said Trump will now extend it for five years, and the new engine program will follow the same timeline.
The decision represents a notable victory for U.S. automakers such as Ford Motor Co. and General Motors Co., which have contended that earlier trade measures favored foreign competitors. The advantage was particularly evident for vehicles from Japan, which currently face a 15% tariff under a bilateral agreement, down from the 27.5% imposed previously under Trump’s policies.
“A level playing field with a stable and affordable supply chain will mean more growth in America and ultimately more job security and profit sharing for our front-line workers,” said Ford CEO Jim Farley.
These new vehicle and parts tariffs add to Trump’s growing list of levies on imported consumer goods, including steel, copper, lumber, and upholstered furniture.
Trump invoked Section 232 of the Trade Expansion Act to authorize the tariffs, which permits import restrictions on goods deemed to threaten national security. These sector-specific measures differ from the country-based tariffs the administration has imposed under an emergency statute that two federal courts have ruled illegal. The Supreme Court is scheduled to hear the administration’s appeal next month.
