America’s Truck Tariffs Have Just Initiated A New Trade Front | Carscoops

      Approximately 43 percent of Class 4 to Class 8 vehicles sold in the US are sourced from abroad.

      The American President raised national security issues while announcing the tariffs.

      US manufacturers of medium and heavy-duty vehicles will receive a special credit.

      Most vehicles are imported from Mexico, Japan, Germany, Canada, and Finland.

      It was inevitable. President Donald Trump has enacted a 25 percent tariff on foreign-made medium- and heavy-duty pickup trucks and parts, fulfilling a previous commitment.

      The intention behind this action is to protect the American automotive industry, though it will likely have a significant impact on Mexico, a major supplier of pickup trucks to the US.

      In his official statement, Trump referenced an investigation led by US Secretary of Commerce Howard Lutnick, which determined that medium- and heavy-duty vehicles are "being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security" of the country. The new tariffs apply to all Class 3 through Class 8 trucks.

      According to the administration, vehicles exchanged under the US-Mexico-Canada Agreement will only incur tariffs on their non-American parts. Trump also confirmed a 10 percent tariff on imported buses.

      With the introduction of these new import duties, the administration announced that medium- and heavy-duty vehicle manufacturers will be eligible for a credit worth 3.75 percent of the suggested retail price for vehicles assembled in the US through 2030.

      This initiative aims to mitigate the impact of import tariffs on foreign components.

      President Trump characterized the United States as the “undisputed leader in MHDV (medium and heavy-duty vehicle) manufacturing” from the 1950s to the 1990s, but asserted that an increasing proportion of these vehicles now originates from overseas.

      In fact, he pointed out that 43 percent of Class 4 through Class 8 MHDVs sold in the US are imported.

      Not Everyone is Satisfied

      Reuters has reported that the US Chamber of Commerce had earlier cautioned Trump against implementing the new tariffs, claiming that the top five suppliers of these vehicles and buses—Mexico, Japan, Germany, Canada, and Finland—do not pose any threat to US national security.

      The American Trucking Association also expressed discontent. In a statement to CTV News, the organization mentioned that the tariffs could increase costs at a particularly challenging time for the industry, which is already facing pressure from ongoing steel tariffs.