The U.S. put a 25% tariff on imported medium and heavy trucks and parts

In October 2025, U.S. President Donald Trump signed a proclamation under Section 232 of the Trade Expansion Act of 1962 imposing tariffs on imported medium- and heavy-duty trucks, truck parts and buses. The tariffs took effect on Nov. 1.

What the proclamation covered

• A 25% tariff on imported Class 3 to Class 8 trucks, from large pickups and cargo trucks to dump trucks and highway tractors.
• For trucks that qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA), the tariff applies only to the value of non-U.S. content. Non-qualifying trucks pay on their full value.
• A 25% tariff on key truck parts, including engines, transmissions, tires and chassis. USMCA-compliant parts were exempt until the U.S. Commerce Department sets up a process to tariff their non-U.S. content.
• A 10% tariff on buses, including school buses, transit buses and motor coaches.
• Goods covered were not also subject to the separate U.S. tariffs on Canada, or to sectoral tariffs on steel, aluminum and autos.

The White House said imports made up about 43% of trucks sold in the U.S.

Impact in Canada

CBC News reported that Canada exported about $5 billion worth of trucks to the U.S. in 2024 and imported just under $9 billion. Dennis Darby of Canadian Manufacturers & Exporters said about 20,000 people work in the sector across Canada. Paccar, which builds trucks in Sainte-Thérèse, Que., had cut 175 jobs in July and announced another 300 shortly before the tariffs took effect.

Chace Barber, founder of Edison Motors in Golden, B.C., said a handful of its U.S. shipments would be hit, with the tariffs adding as much as $100,000 to the cost of a finished heavy-duty truck, and that the company was refocusing on the Canadian market. McGill University professor Saibal Ray warned the tariffs could threaten smaller manufacturers, especially in Quebec, and said a "Buy Canadian" push could help.