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US Tariffs Hit Heavy Trucks, Buses: What 25% Duty Means for Trade

The United States has implemented new tariffs on imported heavy vehicles. A 25 percent duty now applies to medium and heavy-duty trucks, while buses face a 10 percent tariff. The White House justified these measures as necessary for national security and military readiness. These tariffs come despite warnings from industry groups about potential negative impacts on manufacturers and trade partners.

Key Points: US Imposes 25% Tariff on Heavy Trucks and 10% on Buses

  • 25% tariff on medium and heavy-duty trucks takes effect immediately
  • 10% duty imposed on bus imports from all countries
  • White House cites national security risks from vehicle imports
  • American Trucking Associations warned tariffs could hurt manufacturers and dealers
2 min read

US tariffs on imports of heavy trucks, buses comes into effect

New US tariffs target heavy trucks and buses, citing national security. White House says move vital for military readiness, despite industry concerns over trade impact.

"vital for America’s military readiness, emergency response capabilities, and critical infrastructure for economic activity - White House statement"

Mumbai, Nov 1

A 25 per cent US tariff on medium and heavy-duty trucks and a 10 per cent duty on buses took effect on Saturday, following President Donald Trump's administration's investigation into national security risks from these imports.

“Products subject to tariffs under this proclamation will not be subject to additional or existing sectoral tariffs on steel, aluminium, copper, automobiles and automobile parts, and lumber,” the White House said in a statement.

President Trump started the investigations, under the authority of the Trade Expansion Act of 1962, to impose tariffs on various categories of goods in efforts to boost domestic manufacturing and punish countries deemed to be taking advantage of the United States.

The move is “vital for America’s military readiness, emergency response capabilities, and critical infrastructure for economic activity,” the White House statement said.

Trucks will be exempted from separate "reciprocal" duties setting out rates varying by trading partners.

The American Trucking Associations, representing some 37,000 companies, urged in May for the Trump administration to hold off truck tariffs, citing concerns that reduced sales would negatively impact manufacturers, dealers, and motor carriers.

Under the new tariff regime, trucks qualifying for favourable US-Mexico-Canada Agreement (USMCA) treatment will incur 25 per cent tariffs solely on their non-US content. Additionally, eligible truck parts will enter the US tariff-free until the Commerce Department establishes a process to identify non-US content.

A United Overseas Bank analysis found that over 70 per cent of heavy trucks are imported from Mexico, while approximately 20 per cent come from Canada.

Trade pressure has impacted Mexico, with heavy vehicle exports to the U.S. declining nearly 26 per cent year-on-year from January to August. Mexico's economy shrank 0.3 per cent YoY in the third quarter, as the country engaged in discussions with Washington to seek relief from extensive tariffs.

- IANS

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Reader Comments

P
Priya S
While I understand the US wanting to protect domestic manufacturing, 25% tariff seems excessive. This will definitely increase transportation costs in America, which might affect global supply chains including Indian exports. Not a good move for global trade harmony.
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Arjun K
Interesting how they're calling it "national security" when it's clearly about protecting local industries. Mexico's economy shrinking shows how dependent they became on US market. India should learn from this and diversify our trade partnerships.
S
Sarah B
As someone working in logistics, this will definitely push up costs for American trucking companies. They'll either absorb the costs or pass them to consumers. Either way, not good for business. Hope India doesn't face similar restrictions.
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Vikram M
The USMCA exemption shows how trade agreements can protect certain countries. India should negotiate similar favorable terms in our trade deals. Our auto industry has huge potential if we get the right market access. 🚛
M
Michael C
While protectionism might help in short term, long-term it hurts innovation and competition. Indian manufacturers should focus on quality and innovation rather than relying on cheap exports. This could be an opportunity in disguise.

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