by Introduction of New Tariffs on Trucks and Buses
US President Donald Trump has imposed 25 percent tariffs on imported medium and heavy-duty trucks, as well as their parts. This step was expected to be aimed at protecting the American automotive industry, but could significantly affect Mexico, which is a major exporter of trucks to the United States.
National Security and Justification for Tariffs
In his proclamation, Trump cited an investigation conducted by Secretary of Commerce Howard Latnik, who claimed that the import of these vehicles in large volumes poses a threat to the country’s national security. The tariffs apply to all trucks in classes 3 through 8.
Vehicles are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security.
Terms for Partner Countries and Additional Measures
For vehicles traded under the US-Mexico-Canada Agreement, tariffs will only be levied on non-American components. Furthermore, the president confirmed the imposition of a 10 percent tariff on imported buses. US manufacturers of medium and heavy-duty trucks will receive a credit of 3.75% of the manufacturer’s suggested retail price for vehicles assembled in the country until 2030, which is intended to offset tariffs on imported parts.
Historical Context and Modern Trends
Trump called the United States the undisputed leader in the production of medium and heavy-duty vehicles from the 1950s to the 1990s, but noted that a significant portion of these vehicles are now imported from abroad. Specifically, he stated that 43% of class 4-8 vehicles sold in the US originate from other countries.
Business Reaction and Criticism
The US Chamber of Commerce had warned Trump about the dangers of new tariffs, emphasizing that major importers such as Mexico, Japan, Germany, Canada, and Finland do not pose a threat to US national security. The American Trucking Associations also expressed disappointment, noting that the tariffs could lead to price increases in an industry already suffering from previous steel tariffs.
These measures could have far-reaching consequences for international trade, especially for countries that export trucks to the United States. Increased costs for importers could lead to price increases in the market, affecting logistics companies and consumers. Furthermore, it could provoke retaliatory measures from trading partners, deepening trade tensions.
