USA to Impose 25% Tariffs on Imported Medium and Heavy-Duty Trucks from November 1

On October 6, 2025, President Donald Trump confirmed a 25% tariff on all imported medium and heavy-duty trucks, effective November 1, 2025. This decision aims to strengthen domestic truck manufacturing and reduce dependency on foreign-built vehicles.

25% Import Tariff on Larger Trucks Announced

President Trump declared via social media that starting November 1, 2025, every medium and heavy-duty truck imported into the United States will be subject to a 25% tariff. The announcement follows earlier hints made in September about targeting truck imports, which he linked to national security concerns. The move is expected to benefit US-based manufacturers like Peterbilt and Kenworth, owned by Paccar, along with Freightliner, under Daimler Truck.

Vehicles Affected by the New Tariff

The new tariff applies to a wide range of large commercial vehicles, including delivery trucks, school buses, semi-trucks, garbage trucks, public utility trucks, transit buses, shuttle vehicles, and other vocational heavy-duty vehicles brought into the country. These tariffs will likely increase costs for importers and potentially alter supply chains depending on market adaptation.

Read More: Trump’s New Tariffs Impose 10% on Lumber, 25% on Cabinets and Furniture Imports!

Trade Deal Ambiguity and Possible Exemptions

Current trade agreements with Japan and the European Union stipulate a 15% tariff rate for light-duty vehicles. However, it is presently unclear how or if these terms apply to medium or heavy-duty categories. Specific exemptions exist for vehicles assembled in Canada or Mexico, where the value of US-origin components can be deducted from tariff calculations. Whether similar flexibilities will extend to heavier vehicles remains uncertain.

Aligned with Broader Trade Objectives

The truck tariffs are part of a larger tariff deployment planned by the Trump administration, which also includes new duties on timber, kitchen cabinetry, and furniture. These measures allow policy enforcement despite ongoing legal disputes regarding broader country-specific tariffs under the International Emergency Economic Powers Act, with a Supreme Court hearing due on November 5, 2025.

Conclusion

With the 25% tariff on medium and heavy-duty trucks, the Trump administration continues to prioritise domestic production and limit foreign competition in the commercial vehicle segment. The policy may reshape vehicle import strategies and influence future trade negotiations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.