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The Trump Administration has provided more details of the previously announced Section 232 tariffs on heavy-duty vehicles and their parts, as well as buses. The specifics, outlined in this fact sheet and this proclamation, are summarized below:
- 25% Section 232 tariff on medium and heavy duty trucks and their parts beginning November 1, 2025. Medium and heavy duty trucks include Class 3 to Class 8 vehicles (such as large pickup trucks, moving trucks, cargo trucks, dump trucks, tractors for eighteen-wheelers, etc). The subject parts will apply to key components of medium and heavy duty trucks, including engines, transmissions, chassis and tires.
- For vehicles subject to this order that do not qualify for USMCA, the 25% tariff will apply to the full value of the vehicle. For vehicles that do qualify for USMCA, the 25% will be applied only to the non-US content of the vehicle.
- For parts subject to this order that do not qualify for USMCA, the 25% tariff will apply to the full value of the part. For parts that do qualify for USMCA, the parts will temporarily be exempt from this tariff, until a process to apply tariffs to the non-US content is established by the Department of Commerce.
- The import adjustment offset for automobile manufacturers has been extended until 2030, allowing producers to offset 3.75% of the MSRP of US-assembled automobiles against tariffs on automobile parts. This percentage reflects a 25% tariff on 15% of a US-assembled automobile's value.
- 10% Section 232 tariff on buses, including school buses, transit buses and motor coaches beginning November 1, 2025.
- These tariffs will be imposed for all countries.
- Products subject to (defined as paying duties) Section 232 tariffs will continue to be exempt from other Section 232 tariffs, reciprocal tariffs, and the IEEPA punitive tariffs for Brazil and India.
Please see Annex I - Medium&HeavyDutyVehicles&Parts&Buses for a complete listing of the HTS codes currently impacted by this order.
As always, we encourage you to review the full details of the fact sheet and proclamation.
Please don’t hesitate to reach out to us with any questions or concerns.
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