The move follows a Section 232 investigation under the Trade Expansion Act of 1962, which allows tariffs on imports deemed a threat to national security.
Mumbai
The United States has begun imposing new tariffs on imported heavy vehicles, marking a major shift in trade policy. A 25 per cent duty on medium and heavy-duty trucks and a 10 per cent duty on buses came into effect on Saturday, following an investigation by President Donald Trump’s administration into national security risks tied to these imports.
According to the White House, the affected products will not face any additional or overlapping tariffs already applied to steel, aluminium, copper, automobiles, auto parts, or lumber. The investigation was carried out under the Trade Expansion Act of 1962, which allows the government to impose tariffs to strengthen domestic industries and safeguard national interests.
The White House described the decision as “vital for America’s military readiness, emergency response capabilities, and critical infrastructure.” However, the American Trucking Associations, representing around 37,000 companies, had earlier urged the administration to delay the move, warning that it could harm manufacturers, dealers, and carriers by reducing sales.
Under the new rules, trucks that qualify under the US-Mexico-Canada Agreement (USMCA) will only face the 25 per cent tariff on their non-US content. Eligible truck parts will temporarily enter the country tariff-free until the Commerce Department establishes a system to determine foreign content.
Data from the United Overseas Bank shows that over 70 per cent of heavy trucks imported to the US come from Mexico, while around 20 per cent come from Canada. Mexico’s exports of heavy vehicles to the US fell nearly 26 per cent year-on-year from January to August, contributing to a 0.3 per cent decline in its economy as trade talks with Washington continue.
