Truck Freight Update: U.S. Imposes 25% Tariff on Medium-Heavy Trucks
The US government has announced a new 25% tariff on imported medium- and heavy-duty trucks, marking a major shift for North American trade and logistics. The move comes as the Canada–United States–Mexico Agreement (CUSMA/USMCA/TMEC) undergoes review, sparking renewed discussion about regional manufacturing rules.
Why This Matters
The United States imports most of its medium and heavy trucks from Mexico, a key production hub for North American automakers. Under USMCA, these vehicles can move tariff-free — but only if they meet strict rules of origin.
Currently, at least 64% of a truck’s value must originate within North America, a threshold that will rise to 70% in the coming years. In addition, key components like engines, axles, and transmissions must contain at least 75% North American content, and 70% of steel and aluminum must be sourced domestically.
Who’s Affected
Trucks that fail to meet these content requirements are no longer exempt under USMCA’s tariff-free framework. As a result, President Trump’s newly imposed 25% tariff could apply even to vehicles produced in Mexico or Canada if they include too many imported components from outside the region. This development underscores the importance of supply chain transparency and compliance with regional content rules for manufacturers and importers alike.
Companies that rely on imported truck equipment or parts may face significant cost increases, making customs planning and documentation accuracy more critical than ever.
Looking Ahead
As trade policies continue to evolve, businesses in the logistics and automotive sectors should monitor tariff changes closely and consult with their customs brokers to ensure compliance. Strategic sourcing and proactive trade management can help minimize the impact of shifting trade policies on operations and profitability.
For more information, contact Melanie Basu, Truck Services.
