President Trump Imposes 25% Tariffs on Imported Trucks, Buses, and Parts

TL/DR –

President Trump has signed a proclamation imposing 25% tariffs on imports of all medium and heavy-duty trucks and their parts, and 10% tariffs on all imported buses. The tariffs are designed to protect US companies from foreign competitors and to discourage the use of only foreign materials in vehicle manufacturing. The Trump administration will also provide a credit for vehicle manufacturers who import some parts into the US for domestic production, in order to offset the tariffs.

Trump Imposes Tariffs on Imported Trucks and Bus Parts

President Trump signed a proclamation on Friday, imposing 25% tariffs on all imported medium- and heavy-duty trucks, along with their parts, and 10% tariffs on all foreign buses. Trump had previously stated intention to discourage use of foreign materials in local vehicle manufacturing.

The 25% tariff on all imported trucks will span Class 3 to Class 8 vehicles, according to senior administration officials who chose to remain anonymous. The administration is also planning to offer a credit to vehicle manufacturers that import parts for local manufacturing, mitigating the impact of the imposed tariffs, an official stated.

“The intention behind these measures is to stimulate domestic vehicle manufacturing. We are permitting a credit to offset any tariff liability for the parts that need to be imported for United States’ manufacturing,” the official elaborated.

According to the administration, the amount of credit will depend on the percentage of the vehicle’s parts that are being imported. “This program is designed to facilitate automakers to build in the US, pay American workers good wages, and still remain cost-competitive,” another official explained.

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