United States (U.S.) President Donald Trump stated on Monday that all trucks and buses imported into the U.S. will be subject to a 25 percent tariff starting November 1st, marking a significant escalation of his efforts to protect U.S. companies from foreign competition.
Last month, Trump said that the import of heavy trucks would be subject to new tariffs from October 1st based on national security, stating that the new tariffs were introduced to protect manufacturers from “unfair foreign competition” and that the move would benefit companies such as Peterbilt and Kenworth, owned by Paccar (PCAR.O), and Freightliner, owned by Daimler Truck (DTGGe.DE).
Under trade agreements reached with Japan and the European Union(EU), the U.S. agreed to tariffs of 15 percent on light vehicles, but it is unclear whether that rate will apply to larger vehicles.
Larger vehicles include everything – from delivery trucks, garbage trucks, municipal vehicles, public transport buses, shuttle and school buses, to semi-trailers and heavy-duty specialized trucks.
The U.S. Chamber of Commerce previously called on the Department of Commerce not to impose new tariffs on trucks, noting that the five largest sources of imports – Mexico, Canada, Japan, Germany, and Finland – are “all allies or close partners of the U.S.who do not pose a threat to U.S. national security.”
