Trump Imposes New Tariffs On Imported Trucks And Buses, Citing National Security Threat
President Donald J. Trump has signed a proclamation on Friday imposing new tariffs on imported medium- and heavy-duty vehicles (MHDVs), their parts, and buses, effective November 1, 2025. The action, based on a Section 232 investigation under the Trade Expansion Act of 1962, asserts that the current level of foreign imports of these vehicles and components “threaten to impair the national security of the United States.”
Tariffs Aim to Protect Domestic Industry
The proclamation sets an ad valorem duty rate of 25 percent on imported MHDVs (like trucks) and certain key MHDV parts (MHDVPs). Imported buses will face a lower 10 percent ad valorem duty. These new tariffs are in addition to any existing duties.
The decision follows a report from the Secretary of Commerce, which found that MHDVs are essential to national security, supporting everything from military readiness and the Department of War’s logistics to domestic emergency response and the movement of over 70 percent of the nation’s freight by weight.
Concerns Over Import Penetration and Supply Chain Dependency
A central finding of the investigation was the substantial and growing “import penetration” in the American truck market. The Secretary noted that imports now account for 43 percent of Class 4 through 8 MHDVs sold in the U.S., a figure that rises to 50 percent for the heaviest-duty Class 8 trucks.
The proclamation also highlights a national security vulnerability due to the country’s reliance on foreign suppliers for essential MHDV parts, including engines, batteries, and transmission shafts. The Secretary also determined that the bus industry is similarly at risk of becoming overly dependent on foreign supply chains, posing a separate national security threat.
The proclamation’s goal is “long-term stabilization of United States-produced MHDVs’ market share at approximately 80 percent.” The President stated the actions will “strengthen supply chains; bolster industrial resilience; create high-quality jobs… and increase domestic capacity utilization.”
Incentives for Domestic Manufacturing
To encourage domestic production, the proclamation introduces a mechanism for U.S.-based manufacturers to offset their tariff liability on imported parts:
- Import Adjustment Offset: MHDV manufacturers that assemble vehicles in the United States will be eligible to receive an import adjustment offset equal to 3.75 percent of the aggregate value of all U.S.-assembled MHDVs. This offset amount can only be used to reduce the manufacturer’s tariff liability on imported MHDV parts. A similar offset is established for U.S. MHDV engine manufacturers.
- USMCA Exceptions: MHDVs qualifying for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA) may apply the 25 percent duty only to the non-United States content of the vehicle, provided the importer submits documentation on U.S. content.
The President also took steps to conform the new MHDV tariff system with the existing Proclamation 10908, which previously addressed tariffs on imported automobiles and automobile parts, streamlining the tariff offset programs across the two vehicle sectors. The proclamation also authorized the Secretary of Commerce to potentially reduce some tariffs on steel and aluminum imported from USMCA partners (Canada and Mexico) to support U.S. automobile and MHDV production.
The tariffs are scheduled to take effect just after midnight on November 1, 2025. The Secretary of Commerce will continue to monitor imports and may impose additional tariffs on parts if deemed necessary to eliminate the national security threat.
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