Approximately 43 percent of Class 4 through Class 8 models sold in the US are imported from overseas
As expected, US President Donald Trump has hit foreign-made medium- and heavy-duty pickup trucks and parts with 25 percent tariffs. While the move is supposed to help protect the American car industry, it will have a significant impact on Mexico which is a major exporter of pickup trucks into the US.
In his proclamation, Trump cited an investigation from controversial US Secretary of Commerce Howard Lutnick that medium- and heavy-duty vehicles are “being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security,” of the country. The tariffs cover all Class 3 through Class 8 trucks.
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Applicable vehicles that are traded under the US-Mexico-Canada Agreement will only be tariffed on their non-American parts. President Trump also confirmed a 10 percent tariff on imported buses.
In addition to the hefty new tariffs, the Trump administration confirmed that manufacturers of medium and heavy-duty vehicles will be eligible for a credit equal to 3.75 percent of the suggested retail price for cars assembled in the US through 2030. This is an attempt to offset import tariffs that have been placed on imported parts.
President Trump described the US as the “undisputed leader in MHDV (medium and heavy-duty vehicle) manufacturing” from the 1950s through the 1990s, but says a growing number of these vehicles are now being imported from overseas. Indeed, he said that 43 percent of Class 4 through Class 8 MHDVs sold in the US are imported from overseas.
Not Everyone is Happy
Reuters notes that the US Chamber of Commerce had previously warned Trump against the new tariffs. It said that the top five importers of these vehicles, and buses, were Mexico, Japan, Germany, Canada, and Finland, which pose no threat to US national security.
The American Trucking Association is also disappointed with the new tariffs. It told CTV News that they could drive up prices at an awful time for the industry due to current steel tariffs.
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