A proclamation by President Trump has imposed 25% tariffs on imported medium- and heavy-duty trucks and their parts, including engines, transmissions, tires and chassis components. President Trump’s action also imposes a 10% tariff on imported buses (i.e. school buses, transit buses and motorcoaches). The tariffs apply to the impacted trucks, buses and parts that enter the United States or are withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on November 1, 2025.  

• Read the White House's fact sheet here.

Highlights of This Recent News

• A 25% tariff will apply to the full value of imported medium- and heavy-duty trucks ranging from Class 3 through Class 8 vehicles, including large pickup trucks, moving trucks, cargo trucks, dump trucks, and tractors for eighteen-wheelers. This will have a big impact on the work truck segment of our industry.  
• Medium- and heavy-duty trucks that qualify under the United States-Mexico-Canada Agreement (USMCA) will be subject to tariffs on the non-U.S. content of the vehicle. 
• Medium- and heavy-duty truck parts that are covered by USMCA will not be subject to tariffs until the U.S. Department of Commerce establishes a process to apply tariffs to the non-U.S. content of the parts. 
• The tariffs do not stack on top of existing steel, aluminum, copper, automobiles and auto parts on tariffs from Canada, Brazil, Mexico or India. 

The tariffs are designed to protect the U.S. trucking and bus-manufacturing industries and are being imposed under the Trade Expansion Act of 1962. According to the White House, imports of medium- and heavy-duty vehicles, their key parts and buses are now deemed to pose a potential “threat to national security,” and the Trump Administration has responded with new duties.  

• Click here to read the full executive action. 

The Executive Action also includes a section designed to reduce the tariff impacts on automakers that manufacture vehicles in the United States yet source parts and components from around the world.  

• The action extends and expands a tariff offset program that allows companies assembling motor vehicles domestically to claim a credit worth 3.75% of the MSRP of those vehicles for 2025 through 2030. This credit helps to offset the 25% tariffs on imported parts and give automakers time to reshore their parts supply.  
• Previously, this offset was scheduled to expire after two years. The action notes that a similar credit will be introduced for truck-engine producers, though it will take effect later. 
• The 3.75% offset reflects the duty that would be owed when a 25% tariff is applied to 15% of the value of a U.S.-assembled automobile. 

SEMA's government relations team is closely monitoring updates from the White House. If you have any questions, contact Juan Mejia, SEMA's senior manager for federal government affairs, at juanm@sema.org. 

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