Prez Adjusts Heavy Truck Imports: Details Fuzzy
Published Date: 10/22/2025
Presidential Document
Summary
The U.S. is tightening rules on importing medium- and heavy-duty trucks, parts, and buses to protect national security and support American jobs. These vehicles are crucial for the military, emergency services, and moving essential goods. Starting soon, import limits will help boost U.S. manufacturing and keep our supply chains strong, with changes affecting companies and buyers in this industry.
Analyzed Economic Effects
10 provisions identified: 4 benefits, 5 costs, 1 mixed.
25% Tariff on Medium/Heavy Trucks
If you import medium- or heavy-duty vehicles (MHDVs) or the specified MHDV parts, those imports will be subject to a 25% ad valorem duty beginning November 1, 2025. The 25% tariff applies to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on November 1, 2025.
10% Duty Specifically for Buses
If you import buses (HTSUS heading 8702), those imports will be subject to a 10% ad valorem duty beginning November 1, 2025. This 10% rate is specified separately from the 25% rate that applies to other MHDVs.
USMCA Content Can Limit Tariff Base
If your imported MHDV qualifies for preferential treatment under USMCA, you may submit documentation showing United States content so that the Secretary may allow the 25% duty to apply only to the non‑United States content of that model. For many MHDV parts, USMCA claimants will not be subject to the additional duty until the Secretary publishes a process in the Federal Register to apply the tariff only to non‑U.S. content.
3.75% Offset for U.S.-Assembled MHDVs
If you are an MHDV manufacturer that assembles vehicles in the United States, you may apply to the Secretary for an import adjustment offset equal to 3.75% of the aggregate value of all MHDVs you assemble each year from November 1, 2025 through October 31, 2030. Only MHDVs that undergo final assembly in the United States are eligible, and offsets may be used only to offset that manufacturer's tariff liability.
Engine Manufacturers Eligible for Same Offset
The Secretary will establish a process for MHDV engine manufacturers equivalent to the 3.75% import adjustment offset; offsets for engine manufacturers will be based on the aggregate value of engines assembled in the United States over the same November 1, 2025 through October 31, 2030 period. Engines assembled in the United States must meet the same assembly requirement to qualify.
Penalty if U.S. Content Is Overstated
If Customs finds that you overstated the declared U.S. content of an imported MHDV, the 25% tariff will apply to the full value of that MHDV and to all imports of the same model by the same importer from the date of the inaccurate declaration until CBP verifies compliance. This applies when CBP determines the declared non‑U.S. content value was inaccurate due to an overstatement of U.S. content.
Secretary Can Add More Parts to Tariff List
The Secretary may establish a process and add additional medium- and heavy-duty vehicle parts (MHDVPs) to the scope of the tariffs if doing so would reduce or eliminate the national security threat. The process may include receiving information and requests from domestic parts producers or other interested parties.
Steel/Aluminum Rate Adjustments for Canada/Mexico Suppliers
The Secretary may reduce tariffs under the earlier steel and aluminum proclamations by up to half for producers that operate facilities in Canada or Mexico and supply U.S. automobile or MHDV manufacturers, limited to newly committed U.S. production capacity; any adjusted rate cannot be lower than 25%. These reductions are limited to imports that qualify for USMCA preferential tariff treatment and were smelted and cast or melted and poured in Canada or Mexico.
Limit on Drawback Claims for Parts Duties
As of the effective date, only manufacturing drawback claims under sections 1313(a)-(b) of the Tariff Act of 1930 are available for duties imposed on MHDVPs and automobile parts under the related proclamations. The Secretary may adjust a company's offset accrual amount to avoid awarding excessive offset benefits when production receives drawback benefits upon export.
25-Year Old Vehicle Exemption
Imports of MHDVs and buses that were manufactured at least 25 years before the date of entry are not subject to the tariffs under this proclamation. This exemption applies to entries on or after the proclamation's effective date.
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