Trump Extends Auto Tariff Relief While Implementing New Truck Import Duties

President Donald Trump has signed an executive order extending tariff relief for automakers importing vehicle parts while simultaneously implementing a new 25% tariff on imported medium and heavy-duty trucks and parts, effective November 1.

This action follows a Section 232 investigation launched earlier this year to evaluate the impact of truck imports on national security. The Trump administration has frequently utilized these investigations under the Trade Expansion Act of 1962 to impose tariffs on various imported goods with the dual goals of strengthening domestic manufacturing and addressing perceived trade imbalances.

The order extends an important provision for the auto industry, allowing companies that import parts for U.S.-assembled vehicles to offset 3.75% of a vehicle's list price. This offset program, which was previously scheduled to gradually decrease before being eliminated, will now continue unchanged until 2030.

A similar offset mechanism is being established for medium and heavy-duty trucks, also extending through 2030. Administration officials indicated that these measures are designed to incentivize vehicle production within the United States.

Despite the substantial tariffs targeting imported trucks, certain exemptions will be available under the U.S.-Mexico-Canada Agreement (USMCA). Economic analysts note that approximately 78% of heavy truck imports to the United States originate from Mexico, with Canada supplying another 15%.

Under the new framework, trucks qualifying for preferential USMCA treatment will see tariffs applied only to their non-U.S. content. Eligible truck parts will initially enter duty-free until the Commerce Department establishes a process for targeting non-U.S. components.

Imported buses will face a 10% tariff and will not receive preferential treatment under the USMCA, according to senior Trump administration officials.

Both Canada and Mexico have been pursuing agreements with Washington following Trump's implementation of significant tariffs on U.S. neighbors earlier this year. These trade pressures have already impacted Mexico's economy, with exports of heavy vehicles to the United States declining by nearly 26% year-over-year during the January to August period.