Trump imposes 25% tariffs on all imported medium & heavy-duty trucks starting November 1, 2025.
Trump Imposes 25% Tariffs: US President Donald Trump announced on Monday that a 25% import duty (tariff) will be imposed on all medium and heavy-duty trucks imported into the US starting November 1, 2025. This move is intended to protect American truck manufacturers from foreign competition.
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Trump wrote on his social media platform, "A 25% tariff will be imposed on all medium and heavy-duty trucks imported from other countries starting November 1, 2025." Trump stated that this decision was taken to protect American companies and workers from unfair foreign competition. He added, "We will not allow our industries to be harmed by foreign dumping and unfair trade policies."
Which countries will be affected?
> This decision will impact several countries, including Mexico, Canada, Japan, Germany, and Finland.
> Mexico's truck exports have tripled to approximately 340,000 units.
Under the USMCA agreement between the United States, Mexico, and Canada, trucks can currently be imported duty-free, provided 64% of their value comes from North America. The new tariff could impact this arrangement.
Impact on Companies
Stellantis (which manufactures 'Ram' brand trucks and vans) may now incur higher costs on trucks manufactured in Mexico.
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Volvo Group, a Swedish company, is building a new $700 million truck plant in Monterrey, Mexico, which is expected to be operational in 2026. The new tariffs could also impact this investment.
Tariff implementation deadline extended
Last month, Trump stated that the tariffs could come into effect on October 1, but now the date has been extended to November 1, 2025. He claimed that this move would benefit American companies like Peterbilt, Kenworth, and Freightliner.
Summary
Currently, the US imposes a 15% tariff on light vehicles under trade agreements with Japan and the European Union, but it is unclear how the new rule will apply to larger vehicles.
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