US Eases Tariffs for Mexico, 25% Hits Non-US Truck Content

The United States government has announced a new tariff structure on medium and heavy-duty vehicles (MHDVs) and key components imported from Mexico and Canada, introducing a partial exemption based on the USMCA’s rules of origin. The proclamation, signed by President Donald Trump, establishes a 25% tariff on imported MHDVs and certain parts but applies the duty only to the non-US content of qualifying vehicles under the trade agreement.

The measure, which will take effect on Nov. 1, 2025, mirrors the system currently applied to light motor vehicles and their components. “For medium and heavy trucks that qualify for preferential tariff treatment under the USMCA, the tariff will only apply to the value of the non-US content of the vehicle,” the proclamation stated.

The decree clarifies that if a truck or its parts do not meet USMCA origin requirements, the 25% tariff will apply to the entire value of the product. Vehicles meeting the content thresholds will face reduced duties, providing an incentive for manufacturers to strengthen regional sourcing.

In contrast, buses imported from Mexico or Canada will be subject to a flat 10% tariff, without preferential treatment. The new tariff structure also targets critical auto components such as engines, transmissions, tires, and chassis.

According to the US Department of Commerce, the program also extends to manufacturers seeking tariff relief on imported parts used in US vehicle production. In June 2025, the department issued regulations under Section 232 of the Trade Expansion Act of 1962, outlining how producers can apply for such reductions.

From January to July 2025, the U.S. imported US$32.41 billion in trucks, buses, and specialty vehicles globally—a 15.4% decline from the same period in 2024. Mexico remained the top exporter, with US$25.86 billion in shipments, representing a 13.8% year-on-year decrease, according to Commerce Department data.

The proclamation also reaffirms the existing 25% tariff on automobile imports from most countries while introducing a compensatory mechanism for domestic manufacturers. Automakers assembling vehicles in the United States will be eligible for a 3.75% tax credit on the suggested retail price of light-duty vehicles to offset import duties on auto parts. This benefit, now expanded to medium and heavy trucks, will remain in effect until 2030.

“Manufacturers will be able to request import adjustment compensation equivalent to 3.75% of the added value of all medium- and heavy-duty vehicles assembled in the United States from Nov. 1, 2025, through Oct. 31, 2030,” the proclamation stated.