US President Donald Trump announced on Monday that 25% import duty (tariff) will be imposed on all medium and heavy trucks imported in the US from 1 November 2025. This step has been taken to protect American truck manufacturers from foreign competition.

Trump wrote on his social media platform, “From 1 November 2025, 25% tariffs will be imposed on all medium and heavy duty trucks coming from other countries.” Trump said that the decision has been taken to protect American companies and workers from unfair foreign competition. He said, “We will not let our industries suffer from foreign dumping and wrong trade policies.”

Which countries will be affected

The decision will affect many countries, including Mexico, Canada, Japan, Germany and Finland.

• Mexico exports the most medium and heavy trucks to the US. Since 2019, the truck export of Mexico has increased three times to about 3.4 lakh units.
• Under the USMCA agreement between the US, Mexico and Canada, trucks can still be imported without any duty, provided their 64% value comes from North America. The new tariff can affect this system.

Impact on companies

• Stellantis (which makes ‘Ram’ brand trucks and vans) may now have to face more costs on trucks made in Mexico.
• The Volvo Group is a Sweden company that is constructing a new 700 million dollar truck plant in Montere, Mexico, which is expected to be operational in 2026. The new tariff can also affect this investment.

Time to implement tariff increased

Last month, Trump had said that this tariff could be applicable from October 1, but now its date has been extended to 1 November 2025. He claimed that this step would benefit American companies like Peterbilt, Kenworth and Freightliner.

Currently, under the trade agreements with the US, Japan and the European Union, light vehicles impose 15% tariffs, but it is not clear how the new rule will apply to large vehicles.

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