• Trump signs order imposing 25% tariffs on medium and heavy-duty truck imports and parts.
• The measure aims to encourage U.S. auto production and protect domestic manufacturers.
• Automakers can offset tariffs with a credit on imported vehicle parts through 2030.
• The new tariffs begin on November 1 and include a 10% duty on buses.
• About 78% of truck imports come from Mexico, raising concerns about trade impacts.

On October 17, President Trump signed an order imposing a 25% tariff on the import of medium and heavy-duty trucks and their parts, effective November 1. The order includes a 10% tariff on imported buses. These tariffs are described as necessary for national security and aim to bolster U.S. manufacturing by discouraging reliance on foreign imports, particularly from Mexico, which supplies a significant portion of these vehicles, according to Reuters and CBS News.

Alongside the tariffs, the order expands an existing 3.75% credit for automotive manufacturers importing parts needed for U.S.-assembled vehicles, helping to offset the costs associated with the new tariffs. This credit scheme has been extended through 2030, maintaining incentives for companies to produce domestically. According to experts, this approach aims to encourage manufacturers to continue using American labor while remaining competitive despite the tariffs, as stated by India Times and CBS News.

The implementation of these tariffs follows a Section 232 investigation into truck imports intended to evaluate their effects on U.S. national security. With approximately 78% of heavy truck imports coming from Mexico, the tariffs are expected to have a significant impact on trade relations. However, some trucks may still receive preferential treatment under the US-Mexico-Canada Agreement (USMCA), which aims to allow only non-U.S. content to incur tariffs. The new policies are part of broader discussions surrounding trade with Canada and Mexico, as noted by Reuters, CBS News, and India Times.