Automotive
A giant shakeup just landed within the business truck world. President Donald Trump says america will impose a 25 percent tariff on all imported medium and heavy duty trucks starting November 1, 2025. The goal, in response to the administration, is to shield domestic manufacturers from foreign competition and encourage more production inside U.S. borders.
When you sell or buy Class 4 through Class 8 trucks, this will not be background noise. It touches the whole lot from municipal fleets and last-mile delivery outfits to long-haul carriers and construction corporations. It also ripples through suppliers, dealers, and secondary markets where used values and lead times often react quickly to policy shocks.
Here’s what is changing and why it matters.
The administration frames the tariff as a win for American nameplates that dominate the heavy side of the market. Think Paccar’s Peterbilt and Kenworth in addition to Daimler Truck’s Freightliner. These brands already assemble most of their U.S. volume domestically, but they compete against imported models and gliders that may undercut on price when exchange rates and labor arbitrage line up. A blanket 25 percent levy changes that math overnight.
Section 232 and the national security hook
The tariff follows a Commerce Department investigation under Section 232, the statute often used to justify duties on national security grounds. The main points of the ultimate rule and any carve-outs are still coming into view. What fleets should watch closely is how the administration defines covered vehicles, how customs classifies incomplete chassis, and whether vocational bodies delivered on imported frames fall throughout the same tariff bucket.
Under the USMCA, medium and heavy duty trucks can move tariff free in the event that they satisfy strict regional value content rules. In practice, meaning not less than 64 percent of a heavy truck’s value must originate in North America through engines, axles, aluminum and steel inputs, or assembly labor. The brand new tariff raises a key query. Will qualifying USMCA trucks remain exempt, or does the blanket 25 percent rate override those preferences for accomplished vehicles arriving from Canada and Mexico that don’t meet the content threshold on a line-by-line basis
Mexico is the most important exporter of medium and heavy trucks to america. Import volumes from Mexico have roughly tripled since 2019 to the neighborhood of 340,000 units. Suppliers and final assembly operations south of the border are deeply intertwined with U.S. plants, and Mexico argues that its exported trucks average about 50 percent U.S. content. That integration means a tariff doesn’t only hit a foreign competitor. It could also boomerang across a North American supply chain that shares powertrains, frames, electronics, and labor across borders.
Stellantis builds some heavy duty Ram pickups and business vans in Mexico. The corporate has lobbied against steep, broad tariffs that will sweep in its Mexican-built trucks. Volvo Group is investing heavily in a brand new heavy truck plant near Monterrey that’s planned to come back online in 2026 to support Volvo Trucks and Mack. Policies that lift landed costs on Mexican-assembled units could push timing, sourcing, or allocation decisions as that project ramps.
The U.S. Chamber of Commerce and industry groups are urging restraint. Their argument is simple. The highest import sources for these vehicles are U.S. allies equivalent to Mexico, Canada, Japan, Germany, and Finland, and people flows don’t pose a national security threat. They warn that a broad tariff could raise costs for American businesses, governments, and ultimately consumers who depend on trucking for the whole lot from food to constructing materials.
The tariff is a giant lever pulled on short notice and it introduces real uncertainty right into a segment that lives on tight margins and long planning cycles. Whether it ultimately brings more North American content and assembly or just adds friction and value will hinge on the ultimate rule language, any exemptions for USMCA-compliant vehicles, and the way trading partners respond. For now, fleets that plan quickly and document their sourcing will likely be best positioned to navigate the November 1 switch.
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Lloyd Tobias is a seasoned automotive journalist and passionate enthusiast with over 15 years of experience immersed on the earth of cars. Whether it’s exploring the most recent advancements in automotive technology or keeping an in depth pulse on breaking industry news, Lloyd brings a pointy perspective and a deep appreciation for all things automotive. His writing blends technical insight with real-world enthusiasm, making his contributions each informative and fascinating for readers who share his love for the drive. When he’s not behind the keyboard or under the hood, Lloyd enjoys test driving the most recent models and staying ahead of the curve in an ever-evolving automotive landscape.
This Article First Appeared At www.automotiveaddicts.com
