US President also announced a 10% tariff on imported buses
SÃO PAULO, SP (FOLHAPRESS) – The President of the United States, Donald Trump, signed this Friday (17) decrees that establish tariffs of 25% on imported medium and large trucks, including large pickup trucks and heavy load trucks. The measure comes into force on November 1st.
Trump also announced a 10% tariff on imported buses.
With these new tariffs, virtually every category of vehicle not made in the United States will be subject to higher tariffs than when the president took office.
Many of these vehicles were already made in the U.S., but some come from countries like Mexico, including full-size pickup trucks made by Ram, a unit of Stellantis.
Parts for these trucks will also face higher tariffs, as they already do for auto parts, although some exemptions will apply.
To offset the impact of import tariffs on parts, Trump made automakers eligible for a credit equal to 3.75% of the suggested retail price for vehicles assembled in the U.S. through 2030.
The government is also extending offset credit for engine production and manufacturing of medium and heavy trucks in the country.
Additionally, the administration extended a partial tariff exemption for imported parts, recognizing that it is very difficult to manufacture vehicles without some foreign components. The exemption, originally announced in April, will be valid for five years instead of two, that is, well after the end of Trump’s term. It allows manufacturers to avoid tariffs on imported parts that represent up to 15% of a vehicle’s value. A similar program will be created for trucks.
Some automakers, including Ford Motor, praised the president’s announcement, saying it will make trade in large vehicles fairer. Under previous tariffs, it could still be cheaper to build a truck in Mexico than in Kentucky or Ohio.
Companies that already manufacture most of their vehicles in the United States will likely benefit from the new tariffs, while companies like Stellantis that produce many trucks in Mexico or elsewhere could be hurt.
The new tariffs will not apply to countries that have already negotiated trade agreements with the United States – for example, Japan and South Korea. Vehicles from these countries are subject to 15% tariffs.
There is also a partial exemption for vehicles manufactured in Mexico or Canada. Automakers do not have to pay tariffs on engines and other components manufactured in the United States and then installed in vehicles assembled and imported from those countries.
White House officials have insisted that the latest trade policy measures will not affect consumers, who are facing record car prices. A senior White House official told reporters at a briefing Friday that the administration did not expect to see price increases as a result of the tariffs.
Instead, the tariffs will create a level playing field and encourage companies to create jobs in the United States, the official said.
In a statement, the White House said: “President Trump is strengthening America’s ability to manufacture medium- and large-duty trucks and critical parts, which is vital to America’s military readiness, emergency response capabilities, and infrastructure critical to economic activity.”
