in effect
This is a presidential proclamation issued on October 17, 2025, under Section 232 of the Trade Expansion Act of 1962, which allows the president to restrict imports that threaten national security. It imposes new tariffs on medium- and heavy-duty vehicles (trucks, Class 4–8), certain vehicle parts, and buses, based on a Commerce Department finding that import levels in those categories pose a national security risk. The action took effect November 1, 2025.
Starting November 1, 2025, imported medium- and heavy-duty vehicles and specified parts are subject to a new 25 percent tariff on top of any existing duties; imported buses face a new 10 percent tariff. Vehicles and parts that qualify under the US-Mexico-Canada Agreement (USMCA) may have the tariff applied only to the non-US-made portion of their value, once the Commerce Secretary establishes a process for that calculation. Manufacturers that assemble vehicles or engines in the United States can earn an “import adjustment offset” — a credit worth 3.75 percent of their US-assembled vehicle value annually from 2025 through 2030 — which can be applied against their parts tariff bills. The Commerce Secretary is authorized to expand the list of covered parts over time and to reduce steel and aluminum tariffs by up to half for Canadian or Mexican producers that commit to supplying US truck or auto manufacturers, though those rates may not fall below 25 percent. Vehicles at least 25 years old at the time of import are exempt from these tariffs.
Importers, dealers, and manufacturers of commercial trucks, heavy vehicle parts, and buses will face higher costs on foreign-sourced products beginning November 1, 2025, with the largest impact on companies that source vehicles or components from outside the United States. US-based vehicle and engine manufacturers who assemble products domestically may benefit from the offset credit program, which reduces their net tariff liability on imported parts. Businesses across the supply chain — including engine, transmission, battery, and casting suppliers — are also affected, as the Commerce Secretary has authority to add more part categories to the tariff list over time.