Washington D.C., October 7, 2025 — In a major protectionist step, US President Donald Trump announced on Monday that a 25% import duty will be imposed on all medium and heavy-duty trucks imported into the United States starting November 1, 2025. The decision is aimed at protecting American truck manufacturers and workers from rising foreign competition.
Trump made the announcement through a post on his social media platform, saying:
“From 1 November 2025, 25% tariffs will be imposed on all medium and heavy-duty trucks coming from other countries. We will not let our industries suffer from foreign dumping and unfair trade practices.”
The move marks one of the most aggressive tariff decisions of Trump’s second term, signaling a renewed focus on trade protectionism similar to the policies seen during his first term.
🌍 Countries Likely to Be Impacted
The new import duty is expected to have significant international implications, affecting major truck-exporting nations such as Mexico, Canada, Japan, Germany, and Finland.
Among these, Mexico is likely to be hit the hardest. Over the past six years, Mexico’s truck exports to the US have tripled, reaching nearly 340,000 units annually since 2019. The country has become a key hub for assembling medium and heavy-duty trucks for American and international brands due to its lower production costs.
Under the USMCA (United States–Mexico–Canada Agreement), trucks assembled in Mexico or Canada can currently be imported into the US duty-free, provided at least 64% of the truck’s value originates from North America. However, the new tariff could disrupt this trade arrangement, potentially leading to higher costs for manufacturers and supply chain adjustments.
🏭 Impact on Major Companies
The automotive and trucking industries are expected to feel the impact almost immediately once the tariffs are enforced.
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Stellantis, the parent company of the popular Ram brand of trucks and vans, manufactures a significant portion of its trucks in Mexico. The company may now face increased production costs, which could either squeeze profits or push retail prices higher in the US.
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The Volvo Group, a Swedish multinational, recently announced a $700 million investment in a new truck plant in Monterrey, Mexico, expected to be operational in 2026. The new tariff raises questions about the plant’s long-term profitability and may force Volvo to reassess its supply chain strategy.
Other global truck manufacturers, including companies from Japan and Germany, may also face competitive disadvantages in the US market, potentially leading to reduced exports and delayed investments.
📅 Tariff Implementation Timeline Extended
Interestingly, the implementation timeline for the tariff has been shifted. In September, Trump had indicated that the new duty could be applied as early as October 1, 2025, but the deadline has now been extended to November 1.
The one-month extension is expected to give companies more time to adjust their logistics and pricing strategies before the tariff officially kicks in.
Trump argued that the new policy will strengthen domestic companies like Peterbilt, Kenworth, and Freightliner, which have been pushing for protection against what they call “unfair foreign competition”.
🚚 Trade Experts Warn of Ripple Effects
Trade analysts have warned that while the tariff may benefit US truck manufacturers in the short term, it could also lead to higher truck prices for American consumers, potential retaliation from trading partners, and supply chain disruptions.
“This is a classic Trump-era trade move — designed to create pressure on foreign manufacturers while boosting domestic industries,” said Michael Rosen, a trade policy expert at Georgetown University. “But it may also complicate relations with Mexico and Canada, two of America’s largest trading partners.”
The 25% import tariff on medium and heavy-duty trucks marks another significant shift in US trade policy under Donald Trump’s leadership. As the November 1 deadline approaches, automakers, logistics companies, and global trading partners are closely watching the developments — aware that this decision could reshape the North American trucking industry for years to come.
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