WASHINGTON — Another round of tariffs were announced on Friday when President Donald Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962.
That Act was to impose tariffs on imports of medium and heavy-duty vehicles and parts, and buses, “to bolster American industry and protect national security,” according to a White House fact sheet issued with the announcement.
The Trump Administration imposed a 25% tariff on imports of medium- and heavy-duty trucks and truck parts.
Medium- and heavy-duty trucks include Class 3 to Class 8 vehicles, including 18-wheelers.
For medium and heavy-duty trucks that do not qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), the tariff will apply to the full value of the vehicle. For medium and heavy-duty trucks that qualify for preferential tariff treatment under the USMCA, the tariff will only apply to the value of the non-U.S. content in the vehicle, according to the White House fact sheet.
The tariff on truck parts will apply to key parts, including engines, transmissions, tires, and chassis, and will not be subject to tariffs imposed in the Proclamation until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to the non-U.S. content of the parts.
The White House said the action incentivizes domestic truck production by offering an offset to a portion of tariffs for medium- and heavy-duty truck parts equal to 3.75% of the aggregate value of all trucks assembled in the United States from 2025 through 2030.
It is the same incentives reported over the weekend by the Associated Press giving domestic automakers additional relief from tariffs on auto parts, extending what was supposed to have been a short-term rebate until 2030.
This percentage reflects the duty that would be owed when a 25% tariff is applied to 15% of the value of a U.S.-assembled medium- and heavy-duty truck.
This offset can be used to adjust any Section 232 medium- and heavy-duty truck part tariffs owed by a medium- and heavy-duty truck manufacturer.
An equivalent offset program will also be established for medium- and heavy-duty truck engine manufacturers based on the value of medium- and heavy-duty truck engines assembled in the United States, according to the White House.
“Recognizing that medium- and heavy-duty truck and automobile industries share many common suppliers and structural similarities across their supply chains, this proclamation adjusts the Section 232 automobile tariff program to harmonize that tariff program with the program established for the medium- and heavy-duty truck industry,” the White House stated.
Products subject to tariffs under this proclamation will not be subject to additional or existing sectoral tariffs on steel, aluminum, copper, automobiles and automobile parts, and lumber; they also will not be subject to reciprocal tariffs or the tariffs imposed on Canada, Mexico, Brazil, or India.
Trump stated the action will fortify “America’s ability to manufacture medium- and heavy-duty trucks and essential parts, which is vital for America’s military readiness, emergency response capabilities, and critical infrastructure for economic activity.”
The proclamation follows the Secretary of Commerce’s completion of a Section 232 investigation under the Act, which the White House says found that imports of medium- and heavy-duty trucks, truck parts, and buses threaten to impair the national security of the United States.
“Trucks and buses of all kinds are indispensable to military readiness, military troop movements, disaster response, and the continuity of American critical infrastructure and economic stability, moving over 70% of the Nation’s freight, including essential goods like food, fuel, and medical supplies,” the White House stated. “Domestic truck and bus manufacturing drives technological innovation across the U.S. economy, with benefits that spillover to the entire U.S. industrial base.”
Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.
