(Washington) – US President Trump has officially ordered a 25% tariff on imported medium and heavy-duty trucks and a 10% tariff on buses, effective November 1st. He also extended a tax credit for imported auto parts until 2030.
In recent weeks, Trump has reportedly quietly excluded dozens of products from reciprocal tariffs and is preparing to grant broader reciprocal tariff exemptions to partners with whom the US has reached trade agreements.
On Friday (October 17), Trump issued a presidential proclamation formalizing the truck and parts tariffs previously announced via social media. However, he also extended a tax credit implemented in April until 2030.
Under this credit, automakers receive a 3.75% tax credit for importing parts for assembly in the US. The credit was originally scheduled to be reduced after one year and eventually phased out completely, but the latest announcement extends it until 2030.
Medium- and heavy-duty trucks, which will be subject to tariffs starting next month, will also receive a similar tax credit, also running until 2030. White House officials said this is intended to incentivize companies to produce vehicles in the United States.
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Officials also revealed that the new truck tariffs will also exempt trucks imported through the USMCA, imposing tariffs only on non-US-produced parts. Industry estimates suggest that as many as 78% of US heavy trucks are imported from Mexico, with another 15% purchased from Canada.
However, the new bus tariffs will not include this exemption.
Reciprocal tariffs may be overturned as the White House quietly shifts its tariff strategy
The Wall Street Journal reported Friday that the Trump administration has exempted dozens of products from reciprocal tariffs in recent weeks and has stated that hundreds more products, ranging from agricultural products to aircraft parts, could be exempted if a trade agreement is reached with the United States.
People familiar with the matter say that the idea of exempting tariffs on products not produced in the United States is gradually taking shape within the Trump administration. These latest moves are also a contingency plan for the possibility that the large-scale reciprocal tariff policy will be overturned by the Supreme Court in November.
People familiar with the matter say that while Trump is exempting reciprocal tariffs on many products, he is also accelerating efforts to expand tariffs on products from various industries through Section 232 of the Trade Expansion Act, which has stronger legal authority. The truck and bus tariffs officially announced on Friday are one of them.
