Trump's New 25% Tariffs on Trucks Aim to Boost U.S. Auto Production, Shake Up Trade with Mexico

Trump's New 25% Tariffs on Trucks Aim to Boost U.S. Auto Production, Shake Up Trade with Mexico

October 19, 2025

Get ready for a truck-sized surprise! On Friday, U.S. President Donald Trump unleashed new orders that pack a punch for the auto industry. Starting November 1, a whopping 25% tariff will hit imported medium- and heavy-duty trucks and parts. Guns blazing on national security reasons, the move wants more vehicles made right here in the USA. But guess who might feel the heat? Mexico, the top exporter of these big rigs to America. Not stopping there, Trump also slapped a 10% tariff on imported buses. Meanwhile, to sweeten the deal for U.S. makers, the president signed orders giving automakers a fat credit — 3.75% of the suggested retail price of vehicles assembled in America — lasting all the way to 2030. This boosts incentives for building engines and medium- to heavy-duty trucks in the U.S. as well. The tariffs target all big players on the road, from large pick-up trucks to 18-wheeler tractors – that's Class 3 through Class 8 trucks in truck-talk. Trump says this shields American companies like Peterbilt, Kenworth, and Freightliner from “unfair outside competition.” But not everyone is happy. The U.S. Chamber of Commerce begged Trump to reconsider, arguing that top importers, including friendly neighbors Mexico and Canada, don’t threaten U.S. national security. This isn’t Trump’s first tariff rodeo. May saw 25% tariffs covering $460 billion worth of auto imports. Deals have since eased those tariffs for countries like Japan, the UK, and the EU. Still, the hammer keeps dropping; in August, steel and aluminum tariffs soared on more than 400 products vital for vehicle parts, including those for electric cars and buses. Automakers feel the burn. GM expects up to $5 billion in tariff costs this year; Ford faces a $3 billion hit. Yet, there's a silver lining. Ford CEO Jim Farley praised the new credits, saying they make parts more affordable and help balance the field against imports. Republican Senator Bernie Moreno also called the expanded credit a “game-changer” for encouraging U.S. production. Will these hefty tariffs steer more trucks to roll out of American factories and outsmart global trade? One thing’s for sure – the U.S. auto industry just got a spicy shake-up!

Read More at Economictimes

Tags: Auto tariffs, Donald trump, Us manufacturing, Medium-duty trucks, Import tariffs, Mexico,

Reuters

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