Starting 1 November, a 25% tariff will apply to medium and heavy-duty trucks and parts, with a 10% tariff on imported buses.
President Donald Trump has signed orders to boost US auto and engine production while imposing new tariffs on imported trucks and buses on Friday, 17 October 2025.
Starting 1 November, a 25% tariff will apply to medium and heavy-duty trucks and parts, with a 10% tariff on imported buses, aimed at national security grounds and encouraging domestic manufacturing. Trump argued that the tariffs protect US manufacturers from “unfair outside competition.”
To offset the impact of existing tariffs on imported parts, automakers will now receive a 3.75% credit based on the suggested retail price of US-assembled vehicles, engines, and trucks through 2030. This credit, initially set to decrease after 2026, has been extended and expanded to include more parts, offering greater financial relief to companies like GM, Ford, Toyota, Tesla, and others.
The move is expected to incentivise automakers to shift more production to the US. The new tariffs will cover a wide range of vehicles, including large pickup trucks, cargo trucks, dump trucks, and 18-wheeler tractors.
Meanwhile, the US Chamber of Commerce criticised the decision, noting that key import sources like Mexico, Canada, and Germany pose no national security threat.
This follows a series of trade measures under Trump’s administration, including a 25% tariff on USD 460 billion worth of auto imports last year and increased tariffs on steel and aluminum products, many of which are essential for electric vehicles and buses.
