On Friday, Oct. 17, Trump issued a Presidential Proclamation invoking Section 232 of the Trade Expansion Act of 1962, imposing a 25% tariff on imports of medium- and heavy-duty vehicles and related parts as well as a separate 10% on imports of buses. This will take effect at 12:01 a.m. ET on Nov. 1.
Key Provisions:
- 25% tariff on imports of medium- and heavy-duty trucks and parts: This applies to parts used in medium- and heavy-duty trucks, such as engines, transmissions, tires and chassis.
- Medium- and heavy-duty trucks include vehicles like large pick-up trucks.
- US-Mexico-Canada Agreement (USMCA): Medium- and heavy-duty trucks that do not qualify for preferential tariff treatment under the USMCA, will be subject to the full value of the vehicle. For those that qualify for preferential tariff treatment under the USMCA, the tariff will only apply to the value of the non-U.S. content in the vehicle. USMCA compliant medium- and heavy-duty truck parts will not be subject to the new Section 232 tariffs, until the Secretary of Commerce establishes a process to apply tariffs to the non-U.S. content of the parts.
- Tariff Offset Program (Trucks): Manufacturers using U.S. assembled medium- or heavy-duty truck parts may receive a tariff credit equal to 3.75% of the aggregate value of all trucks assembled in the United States from 2025–2030. This reflects the duty owed when a 25% tariff is applied to 15% of the value of a U.S. assembled medium- and heavy-duty truck.
- This credit can be used to reduce the tariffs that truck manufacturers owe on medium- and heavy-duty truck parts.
- Products subject to this tariff WILL NOT be subject to additional or existing tariffs on steel, aluminum, copper, cars and car parts, or lumber.
- They also will not be subject to reciprocal tariffs that the U.S. has placed on Canada, Mexico, Brazil and India.
- Tariff Offset Program (Automobiles): Due to “common suppliers and structural similarities across their supply chains”, the Proclamation adjusts the Section 232 automobile tariff program to harmonize that tariff program with the program established for the medium- and heavy-duty truck industry.
- It extends the import adjustment offset program for automobile manufacturers through 2030. Automobile producers will be able to offset a portion of tariffs on automobile parts equal to 3.75% of the Manufacturer’s Suggested Retail Price of automobiles they assemble in the United States. This percentage reflects the duty that would be owed when a 25% tariff is applied to 15% of the value of a U.S.-assembled automobile.
Please contact RV Industry Association Director of Federal Affairs Samantha Rocci at srocci@rvia.org with any questions, and keep up with the latest tariff updates here.
