US Tariffs on Trucks, Buses Take Effect amid Trade Tensions

The United States on Saturday began enforcing new import tariffs on medium- and heavy-duty trucks, alongside a 10% duty on buses, marking a significant escalation in the country’s industrial trade policies under President Donald Trump. 

The move, however, includes partial exemptions for vehicles entering under the North American trade pact.

The 25% tariff on imported trucks follows a Section 232 investigation launched earlier this year to determine whether such imports pose a threat to U.S. national security. 

The measure falls under the 1962 Trade Expansion Act, a legal instrument frequently invoked by the Trump administration to impose protectionist tariffs on a range of goods , from steel and aluminum to automobiles , with the stated goal of boosting domestic manufacturing and penalizing trade partners accused of exploiting the U.S. market.

According to the White House, the new truck tariffs will not overlap with existing duties already imposed on steel, aluminum, copper, vehicles, and lumber. Trucks will also be exempt from additional partner-specific tariff schedules, limiting the immediate scope of the new policy but signaling Washington’s readiness to tighten control over industrial imports.

Trade associations representing the U.S. trucking sector, which encompasses roughly 37,000 companies nationwide, have voiced strong opposition. 

In a letter sent to the administration in May, industry leaders warned that higher import costs could dampen sales, disrupt supply chains, and hurt domestic dealerships and manufacturers that rely on North American components.

Economists note that the majority of U.S. truck imports originate from Mexico and Canada, both members of the United States–Mexico–Canada Agreement (USMCA). A recent analysis by United Overseas Bank estimated that Mexican-made heavy trucks account for over 70% of U.S. imports, while Canadian shipments represent around 20%.

Under the new tariff framework, the 25% duty will apply only to non-U.S. components used in trucks that qualify for preferential treatment under USMCA, a clause designed to protect regional production chains while discouraging the use of parts sourced from outside North America, such as China or Southeast Asia.

The new measures come as Mexico faces growing pressure from U.S. trade policies. Between January and August, Mexican heavy vehicle exports to the United States fell by nearly 26% year-on-year, reflecting weaker demand and uncertainty in the cross-border manufacturing sector.

Mexico’s economy also contracted by 0.3% in the third quarter compared with a year earlier, largely due to a slowdown in industrial production and auto exports.

Negotiations between Mexico and the Trump administration remain ongoing as both sides seek to mitigate the impact of the tariffs and prevent further disruption to one of North America’s most tightly integrated industries.

While the White House argues the tariffs are necessary to “safeguard national security” and promote “fair competition,” analysts warn the policy could strain supply chains and inflate vehicle prices in the U.S. market, particularly for logistics and construction firms dependent on heavy-duty imports.

As one Washington-based trade expert put it, “The administration is testing how far it can go in weaponizing Section 232 without breaking North American supply chains. This move is both strategic and risky.”

Whether the new tariffs succeed in revitalizing American truck manufacturing or trigger fresh trade frictions across the continent will likely become clearer in the coming months.