The White House has issued a new proclamation under Section 232 of the Trade Expansion Act, finding that imports of medium- and heavy-duty vehicles (MHDVs), certain medium- and heavy-duty vehicles parts, and buses threaten to impair US national security.
Medium- and heavy-duty trucks include Class 3 to Class 8 vehicles, like large pick-up trucks, moving trucks, cargo trucks, dump trucks, and tractors for eighteen-wheelers. The tariff on medium- and heavy-duty truck parts will apply to key parts, including engines, transmissions, tires, and chassis. Lastly, the proclamation imposes a tariff on imports of buses, including school buses, transit buses, and motor coaches. The subject harmonized tariff numbers can be identified in the current Annex I of the proclamation.
As a result, additional tariffs will take effect November 1, 2025.
- 25% tariff on imported MHDVs
- For vehicles that do NOT qualify for USMCA, the tariff will apply to the full value of the vehicle
- For vehicles that do qualify for USMCA, the tariff will only apply to the value of the non-US content in the vehicle
- 10% tariff on imported buses
- 25% tariff on many medium- and heavy-duty vehicle parts (MHDVP)
- USMCA compliant parts are not subject at this time until the Commerce establishes a process to apply tariffs to the non-US content of the parts
Products subject to tariffs under this proclamation will not be subject to additional or existing sectoral tariffs on steel, aluminum, copper, automobiles and automobile parts, and lumber; they also will not be subject to reciprocal tariffs or the tariffs imposed on Canada, Mexico, Brazil, or India.
The proclamation incentivizes domestic production by offering an offset to a portion of tariffs. We’re here to help, reach out to Mohawk Global.