A significant tariff will soon be placed on heavy-duty trucks, President Donald Trump announced.
Starting on Nov. 1, the United States will impose a 25% tariff on medium- and heavy-duty trucks, Trump wrote in a Monday, Oct. 6 social media post on Truth Social.
Trump previously pledged that the tariff would begin on Oct. 1.
“In order to protect our Great Heavy Truck Manufacturers from unfair outside competition, I will be imposing, as of October 1st, 2025, a 25% Tariff on all “Heavy (Big!) Trucks” made in other parts of the World,” Trump posted on Sept. 25. “Therefore, our Great Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions. We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!”
Land Line’s attempts to reach the truck manufacturers for comment on the scheduled tariffs were unsuccessful.
The American Trucking Associations spoke out against a potential heavy-duty truck tariff in May, saying that the majority of the imports come from Mexico.
“As a USMCSA (United States, Mexico, Canada Agreement) country, we do not believe Mexican truck production poses a national security risk to the U.S.,” ATA Senior Vice President Bob Costello wrote in comments filed to the U.S. Department of Commerce on May 16. “In fact, truck production throughout North America is highly integrated. Even when a truck is assembled in Mexico, major components often come from factories in the U.S., like transmissions and engines. Per the USMCA, heavy-duty trucks are already required to have 64% North American regional content, with that percentage increasing to 70% by 2027.”
Additionally, ATA estimated at the time that a 25% tariff applied to all new trucks from Mexico would increase the average price of a new Class 8 truck from $170,000 to $200,000. Then, a federal excise tax would be added to that.
“This means that trucking companies would have to pay the 12% (federal excise tax) on the post-tariff price of $200,000, not $170,000,” ATA wrote. “That brings the total price of a new truck, on average, to $224,000, which is simply cost-prohibitive for the vast majority of trucking companies.”
Economist’s view
Jason Miller, a professor in supply chain management at Michigan State University, recently told “Trucking with OOIDA” that we are still waiting on some details on how these tariffs are going to be enacted.
“The one piece of clarity we’re really waiting on is whether USMCA exemptions apply or not,” Miller said. “Because if the USMCA exemptions would apply, then this is essentially a null issue, because the vast majority of imported trucks come from Mexico, followed by Canada.”
Assuming there is not an exemption, Miller said the cost of new trucks will increase.
“There’s no doubt in my mind that costs will go up,” Miller said. “Will it be 5%? Will it be 10%? That’s where it’s a little too early to tell.” LL
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