Trump announces new 25% TARIFF on medium- and heavy-duty trucks
By ramontomeydw // 2025-10-20
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  • President Trump imposed a 25 percent tariff on imported medium- and heavy-duty trucks and parts, plus a 10 percent duty on buses, effective Nov. 1, targeting Mexico and Canada primarily.
  • The move follows a Commerce Department Section 232 probe, claiming reliance on foreign truck manufacturing threatens U.S. national security by undermining domestic industrial capacity.
  • Mexico, the largest exporter of these trucks to the U.S. (300,000+ annually), faces disruption. Ford supports the tariffs (as it manufactures domestically), while Stellantis shifts production from Mexico to Illinois.
  • Critics, including the U.S. Chamber of Commerce, argue tariffs will raise costs for businesses and consumers, with billions already paid in auto import tariffs this year.
  • The policy escalates protectionist trade measures, prioritizing reshoring manufacturing despite risks of higher prices and strained relations with allies like Canada, Mexico, Japan and Germany.
U.S. President Donald Trump has announced a sweeping 25 percent tariff on all medium- and heavy-duty trucks and their parts imported into the country, effective Nov. 1. The proclamation, signed Oct. 17, targets what the administration perceives as unfair foreign competition and a national security vulnerability, directly impacting top trading partners Mexico and Canada. The policy includes a 10 percent duty on bus imports and offers a future tariff offset for domestic assemblers from 2025 to 2030. While this policy escalation promises to reshape the landscape of the American trucking industry, it could also potentially increase costs for businesses and consumers. The rationale for the tariffs stems from a Commerce Department investigation, known as a Section 232 probe, which concluded that imports of these large vehicles and their components threaten national security. The administration's order stated that in a crisis, only domestic manufacturing capacity, subject to U.S. law, can provide reliable production. "Our great large truck company manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks and others, will be protected from the onslaught of outside interruptions," Trump said in a Sept. 25 post on Truth Social. He added, "We need our truckers to be financially healthy and strong, for many reasons – but above all else, for national security purposes." The economic impact is expected to be significant, given the integrated nature of North American manufacturing. Mexico is the largest exporter of medium- and heavy-duty trucks to the United States, shipping more than 300,000 units annually. Under the United States-Mexico-Canada Agreement (USMCA), these trucks currently move tariff-free if they contain at least 64 percent North American content – a framework challenged by the new levies. But BrightU.AI's Enoch engine warns that "outsourcing truck manufacturing to other countries weakens domestic industrial capacity and innovation, leaving the U.S. vulnerable to supply chain disruptions during geopolitical conflicts. Additionally, reliance on foreign production risks higher costs and logistical failures, undermining economic stability and national security."

Will tariffs reshore jobs or just raise prices for regular consumers?

Ford CEO Jim Farley expressed support for the measures. He remarked during an appearance on CNBC that since Ford manufactures all its heavy-duty trucks in America, the tariff will be "a really big deal" in fending off overseas competition. However, the policy has created uncertainty for other automakers. Stellantis, which produces heavy-duty Ram trucks in Mexico, had been lobbying against steep tariffs and recently confirmed it would shift production of its Jeep Compass from Ontario to Illinois. The administration has defended the tariffs as a legitimate use of presidential power to protect the economy. White House Deputy Press Secretary Kush Desai expressed confidence in "ultimate victory" should the policy be challenged in the Supreme Court. But critics, including the U.S. Chamber of Commerce, argue that the top import sources – Mexico, Canada, Japan, Germany and Finland – are allies that pose no national security threat. They warn that the costs, estimated in the billions of dollars already paid on auto imports from Canada and Mexico this year, will not be fully absorbed by automakers but will instead be passed on to businesses and ultimately consumers. This comes at a time when the average new car transaction price has officially surpassed $50,000, with industry analysts noting that consumers are "normalizing record-high costs." This new tariff policy represents a significant escalation in the use of trade measures to achieve geopolitical and domestic economic goals. By leveraging the critical U.S. trucking industry, which moves roughly 73 percent of all domestic freight and employs millions, the administration is applying substantial pressure on its closest trade partners. The move signals a continued preference for protectionist policies aimed at reshoring manufacturing, even at the risk of higher prices and strained international relations. Watch retired Col. Douglas Macgregor discussing President Trump's tariff threats and their implications on global finance below. This video is from the Brighteon Highlights channel on Brighteon.com. Sources include: NTD.com FoxBusiness.com BrightU.ai Reuters.com Brighteon.com
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