SUPPORTING AMERICA’S TRUCKING INDUSTRY: Today, President Donald J. Trump signed a Proclamation invoking Section 232 of the Trade Expansion Act of 1962 (Act) to impose tariffs on imports of medium- and heavy-duty vehicles and parts, and buses, to bolster American industry and protect national security.
- The Proclamation imposes 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, like large pick-up trucks, moving trucks, cargo trucks, dump trucks, and tractors for eighteen-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.
- The tariff on medium- and heavy-duty truck parts will apply to key parts, including engines, transmissions, tires, and chassis.
- USMCA-compliant medium- and heavy-duty truck parts 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 Proclamation imposes a 10% tariff on imports of buses, including school buses, transit buses, and motor coaches.
- The Proclamation incentivizes domestic medium- and heavy-duty 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. 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.
- 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 Proclamation extends the import adjustment offset program for automobile manufacturers through 2030. Automobile producers will be able to offset a portion of tariffs on automobile parts equal to 3.75% of the Manufacturer’s Suggested Retail Price of automobiles they assemble in the United States. 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 automobile.
- 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.
STRENGTHENING U.S. TRUCK MANUFACTURING FOR THE LONG HAUL: President Trump is fortifying 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 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.
- Domestic truck and bus manufacturing drives technological innovation across the U.S. economy, with benefits that spillover to the entire U.S. industrial base.
- Since the 1990s, foreign industrial practices and other policies have stimulated foreign vehicle manufacturing at the expense of American manufacturing and innovation.
- Offshoring has resulted in imports of medium- and heavy-duty trucks increasingly penetrating the U.S. market, with imports now accounting for approximately 43% of the trucks sold in America.
- America also increasingly relies on foreign suppliers for several important categories of medium- and heavy-duty truck parts, including engines, batteries, transmission shafts, castings, and forgings. With significantly fewer U.S. producers of truck parts, the domestic supply chain is weaker, resulting in national security vulnerabilities.
- In a time of crisis, America would need adequate, reliable domestic manufacturing capacity for medium- and heavy-duty trucks, medium- and heavy-duty truck parts, and buses. Only factories here, on American soil, subject to American law, can provide that kind of reliable capacity.
- President Trump’s tariffs will protect and expand U.S. medium- and heavy-duty truck, medium- and heavy-duty truck part, and bus manufacturing, securing supply chains essential for national and economic security.
BUILDING ON A RECORD OF SECURING CRITICAL INDUSTRIES AND SUPPLY CHAINS: This Proclamation builds on previous actions taken by the Trump Administration to ensure U.S. trade and industrial policies serve the national interest.
- On Day One, President Trump established his America First Trade Policy to make America’s economy great again.
- President Trump has repeatedly used Section 232 tariffs to protect against threats to our national security and to strengthen manufacturing critical for our national and economic security, including on steel, aluminum, copper, and autos.
- The Department of Commerce is currently conducting additional investigations, including investigations on semiconductors, commercial aircraft, wind turbines, robotics, unmanned aircraft systems, and personal protective equipment.
- President Trump imposed reciprocal tariffs to take back America’s economic sovereignty, address nonreciprocal trade relationships that threaten our economic and national security, and to remedy the consequences of nonreciprocal trade.
- President Trump has issued several Executive Orders, Proclamations, and Presidential Memoranda to boost mining, manufacturing, and investment in domestic industry, including by reducing regulations and eliminating bureaucracy.