President Trump has issued a proclamation that, effective at 12:01 a.m. EDT on Nov. 1, will impose Section 232 tariffs on imports of medium- and heavy-duty trucks and parts as well as buses.
Trucks. The proclamation imposes a 25 percent tariff on medium- and heavy-duty trucks and truck parts. According to a White House fact sheet, subject trucks include Class 3 to Class 8 vehicles like large pickup trucks, moving trucks, cargo trucks, dump trucks, and tractors for 18-wheelers.
For trucks that do not qualify for preferential tariff treatment under the U.S.-Mexico-Canada Agreement the tariff will apply to the full value of the vehicle. For those that do qualify for such treatment the tariff will only apply to the value of the non-U.S. content.
The tariff will also apply to key parts of subject trucks, including engines, transmissions, tires, and chassis, and could be expanded to other parts in the future. However, USMCA-compliant parts will not be subject to the tariff until the Department of Commerce, in consultation with U.S. Customs and Border Protection, establishes a process to apply the tariff to the non-U.S. content of the parts.
If CBP determines that U.S. content has been overstated, the full 25 percent tariff will apply to (1) the declared vehicle and (2) all vehicles of the same model imported by the same party until compliance is verified.
Tariff offset. To incentivize domestic production, the proclamation offers a tariff offset equal to 3.75 percent of the aggregate value of all subject trucks assembled in the U.S. from Nov. 1, 2025, through Oct. 31, 2030. This offset can be used to adjust the Section 232 tariff on truck parts owed by a truck manufacturer. The White House said an equivalent offset will be established for truck engines.
Moreover, the fact sheet states, because the medium- and heavy-duty truck and automobile industries “share many common suppliers and structural similarities across their supply chains,” the proclamation extends a similar import adjustment offset for auto manufacturers (which previously was scheduled to expire in April 2027) through 2030.
Buses. The proclamation imposes a 10 percent tariff on imports of buses, including school buses, transit buses, and motor coaches.
Tariff stacking. The fact sheet notes that products subject to tariffs under this proclamation will not be subject to (1) additional or existing Section 232 tariffs on steel, aluminum, copper, automobiles and automobile parts, and lumber, (2) “reciprocal” tariffs, or (3) tariffs imposed on Canada, Mexico, Brazil, or India.
The proclamation also allows importers to declare a part to be subject to the Section 232 tariffs on automobiles or medium- or heavy-duty trucks if it is (1) not currently subject to such tariffs, (2) not classifiable under HTSUS Chapters 72, 73, or 76, and (3) used for auto or truck production or repair in the U.S.
Tariff reduction. The proclamation allows the DOC to reduce by up to 50 percent the Section 232 tariffs on steel and aluminum imported from Canada or Mexico and used by U.S. auto and truck manufacturers provided that those materials qualify under the USMCA and are smelted and cast or melted and poured in Canada or Mexico.
For more information on these tariffs and how they may affect your business, or on strategies that can be used to mitigate these and other tariffs, please contact an ST&R professional or email us at tariffs@strtrade.com.
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