Trump Extends Auto Tariff Relief, Imposes 25% Import Duty on Trucks and Buses

Trump Moves to Extend Auto Tariff Relief but Hikes Duties on Imported Trucks and Buses

Washington, October 18: President Donald Trump on Friday unveiled a sweeping new trade directive aimed at reshaping America’s vehicle import landscape. The move imposes 25% tariffs on imported medium- and heavy-duty trucks and parts, and a 10% duty on buses, effective November 1, while simultaneously extending tariff relief for U.S. automakers through 2030.

The latest proclamation underscores the Trump administration’s ongoing efforts to revive domestic manufacturing, curb dependence on foreign supply chains, and protect American jobs — even as industries brace for potential cost increases and supply disruptions.

New Tariffs Target Trucks and Buses Starting November 1

Under the new order, the administration will begin imposing 25% tariffs on imported medium and heavy-duty trucks and 10% tariffs on buses, senior officials confirmed. These duties are part of a broader strategy to penalize imports that, according to the White House, pose a national security threat under Section 232 of the Trade Expansion Act.

Truck imports that qualify under the U.S.-Canada-Mexico Agreement (USMCA) will be exempt from the new levies, but the bus imports will not enjoy similar relief.

“President Trump is committed to ensuring that American workers, not foreign manufacturers, reap the rewards of our nation’s economic success,” a senior administration official said.

The duties mark Trump’s latest step in expanding tariffs across a wider range of consumer and industrial goods — from steel and aluminum to copper, lumber, and even upholstered furniture — all intended to reinforce domestic production capabilities.

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Auto Tariff Relief Extended Through 2030

In a significant offset for U.S. automakers, the directive also extends the existing tariff relief program for completed automobiles through 2030, offering companies like Ford Motor Co. and General Motors Co. an extended runway to localize supply chains.

Under the program, automakers can claim an offset worth 3.75% of the value of U.S.-made vehicles — a measure designed to cushion the impact of 25% duties on imported parts and help manufacturers transition to more domestic sourcing.

Initially set to phase out in 2025, the program will now run for five more years, reflecting the administration’s recognition of the industry’s complex supply chain needs.

Trump’s proclamation also includes a forthcoming engine offset program for U.S.-based manufacturers of passenger vehicle and truck engines. While not immediately effective, this measure will mirror the existing relief framework and is expected to provide significant cost advantages once implemented.

Balancing Act: Protecting Jobs While Managing Global Supply Chains

The dual decision — imposing new tariffs while extending relief — reflects what officials call Trump’s “balancing act” in restructuring global trade flows without crippling American producers who depend on imported components.

While tariffs are aimed at spurring local manufacturing, many U.S. truck and auto manufacturers rely heavily on global supply chains for parts and materials.

“The administration is trying to walk a fine line between protecting domestic production and maintaining the viability of U.S. assembly plants,” said a Washington-based trade analyst. “These tariffs could boost local jobs in the long term, but they also risk short-term price pressures and logistical disruptions.”

Industry Reactions: Relief for Automakers, Concerns for Truckmakers

The response from industry players has been mixed. Major automakers like Ford and GM hailed the move as a “leveling of the playing field”, while truck manufacturers expressed concern that the new duties could raise production costs and slow demand in key sectors such as construction and logistics.

“A level playing field with a stable and affordable supply chain will mean more growth in America and ultimately more job security and profit sharing for our front-line workers,” said Ford CEO Jim Farley, welcoming the extension of tariff relief.

Meanwhile, industry groups have warned that the 25% truck tariff could ripple across the economy, driving up vehicle prices, increasing transportation costs, and adding inflationary pressures.

Commerce Department data shows that the U.S. imported about 245,000 medium- and heavy-duty trucks last year, including popular Ram pickups manufactured in Mexico by Stellantis NV — many of which may now face new tariffs unless exempt under USMCA.

Global Trade Implications and Legal Challenges

Trump’s renewed use of Section 232 powers comes amid growing global scrutiny. The provision allows the president to impose tariffs on imports deemed a national security risk, but it has been controversial due to its broad interpretation.

Two federal courts have previously ruled against Trump’s use of emergency trade powers for sectoral tariffs, deeming them unlawful. The U.S. Supreme Court is expected to review the administration’s appeal next month, potentially setting a new precedent for executive authority in trade policy.

Despite legal challenges, the White House insists the tariffs are vital to national security and essential for reducing foreign dependence on critical industries such as automotive manufacturing and heavy transportation.

Broader Economic Impact and Outlook

The latest tariffs add to an expanding pool of trade levies that already includes materials such as steel, aluminum, copper, and timber, underscoring Trump’s broader “America First” economic strategy.

While the administration expects these policies to boost domestic job creation, critics argue they could increase consumer prices and strain U.S. relations with major trading partners.

Economists note that the auto and truck tariff measures could also affect downstream industries, including construction, logistics, and manufacturing, that rely heavily on affordable commercial vehicles.

Nevertheless, Trump’s supporters view the move as a strategic recalibration of U.S. trade policy designed to strengthen national resilience and rebuild industrial capacity.

Conclusion: Trump’s Trade Vision Enters a New Phase

With tariffs on trucks and buses set to take effect on November 1, and auto tariff relief extended through 2030, the Trump administration’s trade agenda continues to reshape America’s industrial future.

The measures represent a calculated push to balance protectionism with competitiveness, ensuring that U.S. manufacturing can thrive in an evolving global trade environment.

As the Supreme Court prepares to weigh in on the legality of Trump’s tariff powers, the coming months may determine whether this bold economic strategy cements a lasting legacy — or triggers a new round of global trade disputes.

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