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The United States will reduce tariffs on trucks and parts imported from Mexico and Canada, softening the blow to American companies from the 25% tariffs scheduled to be imposed early next month.
As President Donald Trump announced on Truth Social this month, Washington is preparing to impose new tariffs on medium- and heavy-duty trucks imported into the United States starting November 1st.
But senior administration officials outlined a carve-out for trucks and their parts consistent with the terms of President Trump’s 2020 U.S.-Mexico-Canada Agreement.
These trucks would only be subject to tariffs on their non-U.S. contents, but the parts would remain duty-free until the Commerce Department figures out how to impose tariffs on non-U.S. contents.
U.S. officials also said they would extend a tariff relief program launched earlier this year for cars made in the country, meaning automakers will have to wait longer to apply for relief and trucks will also be eligible.
Since returning to the White House, President Trump has imposed significant tariffs on automobiles, steel, aluminum, and copper in an effort to expand domestic production.
Earlier this year, the government launched a rebate program that allows automakers who assemble cars in the U.S. to recoup up to 3.75% of a car’s retail price for the next year.
On Friday, the Trump administration announced it would extend the rebate program through 2030, allowing car and truck manufacturers to charge the equivalent of 3.75% for the next five years.
Officials said the changes are aimed at “making producing these vehicles in the U.S. as cost-competitive as possible.”
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Officials said they would develop a similar system available to companies that make engines in the United States and imposed a new 10% tariff on buses.
President Trump’s trade war has caused uncertainty across the North American auto supply chain, with U.S. automakers lobbying furiously against new tariffs imposed by Washington.
Major U.S. automakers such as GM, Ford, and Stellantis have extended supply chains across the U.S., Canada, and Mexico, transporting parts across multiple borders to build a single vehicle.
