US Imposes 25% Duty on Mexican Heavy Truck Imports

US President Donald Trump announced a 25% tariff on imported heavy trucks, effective Oct. 1, 2025, a move that directly affects Mexico, the United States’ largest supplier of these vehicles. “To protect our heavy-truck manufacturers from unfair foreign competition, I will impose a 25% tariff on all heavy trucks manufactured abroad,” Trump said in a social media statement.

Between January and July 2025, the United States imported US$32.41 billion in trucks, buses and special-purpose vehicles, down 15.4% from the same period in 2024, according to the US Department of Commerce. Mexico accounted for US$25.86 billion—nearly 80% of total imports in this category—despite a 13.8% year-over-year decline. By comparison, Mexican car exports to the US reached US$26.25 billion over the same period, representing 23.9% of total US auto imports. Canadian heavy vehicle shipments totaled US$4.88 billion, down 7%.

Trump highlighted US truck manufacturers—including Peterbilt, Kenworth, Freightliner, and Mack Trucks—as key beneficiaries, citing “national security” and the need to keep domestic trucking “financially strong.”

The president also announced additional tariffs: 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 100% on pharmaceuticals. US pharmaceutical imports totaled US$138.7 billion from January to July 2025, up 14% year-over-year.

The measures signal a significant expansion of US trade barriers, with the truck tariff targeting a market where Mexico is the dominant foreign supplier and US manufacturers rely heavily on cross-border supply chains. Earlier tariffs of 50% on steel, aluminum, and copper have already raised input costs for US truck makers.

Many trucks built abroad, including those from Daimler Truck and International Motors, are assembled in Mexico and enter the US duty-free under the United States-Mexico-Canada Agreement (USMCA) if roughly two-thirds of parts are sourced from North America.

The new tariff follows a Commerce Department investigation launched in April to assess whether medium- and heavy-duty truck imports pose a national security risk. It remains unclear whether the duty will apply to all heavy trucks or only to those that fail to meet USMCA content rules, leaving manufacturers and suppliers awaiting formal guidance.