US President Donald Trump announced on Monday that 25% tariffs will be imposed on all moderate and heavy trucks imported in the US from November 1, 2025. The move aims to protect American truck manufacturers from foreign competition. Trump wrote on his social media platform, “From November 1, 2025, 25% tariffs will be imposed on all medium and heavy trucks imported from other countries.” Trump said the decision has been taken to protect American companies and employees from unfair foreign competition. “We will not let our industries suffer from foreign dumping and unfair trade policies,” he said.
Which countries will be affected?
The decision will affect many countries including Mexico, Canada, Japan, Germany and Finland.
Mexico is the largest exporter of moderate and heavy trucks to the US. Since 2019, Mexico’s truck exports have increased three times to about 3.4 lakh units.
Under the USMCA agreement between the United States, Mexico and Canada, trucks can currently be imported fee-free, provided 64% of their value comes from North America. New tariffs can affect this system.
Impact on companies
Stelantis (which makes ‘Ram’ brand trucks and vans) may now face higher costs on trucks manufactured in Mexico.
The Swedish company Volvo Group is constructing a new 700 million dollar truck plant at Monteri, Mexico, which is expected to be operational in 2026. New tariffs can also affect this investment.
Time limit for tariffs extended
Last month, Trump said that tariffs may be effective from October 1, but now its date has been extended to November 1, 2025. He claimed that the move would benefit American companies like Peterbilat, Kenworth and Freightlineer.
The US currently imposes 15% tariff on light vehicles under trade agreements with Japan and the European Union, but it is not clear how the new rule will apply to large vehicles.