US imposes new Tariffs on Trucks and Buses, Citing National Security
WASHINGTON – US President Donald Trump signed an executive order Friday imposing a 25% customs duty on trucks and a 10% duty on buses and coaches, expanding the scope of sectoral tariffs already in place. The move follows a Department of Commerce investigation into whether the relocation of these industries poses a national security risk to the United States.
The tariffs, initially announced in late September for trucks with an original implementation date of October 1, were broadened to include buses and coaches, effective November 1. This extends existing automotive sector tariffs to these vehicle categories.
While vehicles originating from Canada and mexico may be partially exempt under the US-Mexico-Canada Agreement (USMCA), an American official clarified that only parts not manufactured in the United States will be subject to the 25% tariff for those countries, pending further guidance from the Department of Commerce on implementation.
According to Capital Economics, the US imports 78% of its trucks from Mexico and 15% from Canada.The 10% tariff on buses and coaches will apply fully to vehicles from both neighboring countries, nonetheless of USMCA status.
The White House also announced an extension until 2030 of a tax deduction allowing manufacturers to reduce the recommended price of US-made automobiles containing imported parts by 3.75%. This system, initially temporary, was implemented at the industry’s request to mitigate the impact of existing tariffs and will now apply to US-manufactured trucks as well.
(Keystone-SDA)
