New Section 232 Tariffs on Trucks, Buses, and Parts Reshape the U.S. Automotive Landscape

On October 17, President Trump signed a proclamation under Section 232 of the Trade Expansion Act, establishing new tariffs on imported trucks, buses, and their components – a sweeping trade measure aimed at reinforcing domestic production. 

Beginning November 1, 2025, imports of medium- and heavy-duty vehicles (MHDVs) and designated vehicle parts will face a 25 percent duty, while buses and other vehicles under HTS 8702 will incur a 10 percent duty. The White House framed the action as vital to national security, citing the growing reliance on foreign-sourced trucks and components that support not only freight logistics and emergency response, but also the mobility of U.S. military and critical infrastructure sectors. 

Scope and Intent 

The Commerce Department’s investigation concluded that imported MHDVs and their parts have reached import penetration levels as high as 50 percent in some classes, threatening the long-term viability of the U.S. heavy-vehicle manufacturing base. The new tariff regime seeks to stabilize domestic producers’ market share near 80 percent, strengthen supply-chain resilience, and encourage reshoring of engine, transmission, and chassis production that has migrated offshore since the 1990s. 

The proclamation also aligns the new program with the existing Section 232 automobile tariffs imposed earlier this year, creating a uniform system for “stacking” or offsetting overlapping tariff liabilities. This means the truck and auto industries will now operate under similar frameworks for calculating duties, determining U.S. content, and managing offset programs. 

Provisions for U.S. Content and Rebates 

Recognizing the complexity of North American supply chains, the proclamation introduces nuanced exceptions and offset mechanisms: 

• USMCA-qualifying trucks may apply the 25 percent duty only to the non-U.S. content of the vehicle, provided importers submit verified content calculations to Commerce. 

• MHDV parts that qualify under USMCA rules are temporarily exempt until Commerce finalizes a process to apply tariffs solely to the foreign content portion. 

• From November 2025 through October 2030, MHDV and engine manufacturers assembling in the U.S. may claim an “import adjustment offset” equal to 3.75 percent of the value of their domestic assemblies, which effectively reduces the overall tariff burden to about 15 percent. 

• Vehicles manufactured 25 years or older remain exempt. 

Commerce may later expand the list of covered parts to close circumvention gaps and ensure consistency with Section 232’s national security objectives. 

Interplay with Steel and Aluminum Tariffs 

A separate but related provision authorizes partial reductions (up to half) of existing Section 232 steel and aluminum tariffs for producers operating in Canada or Mexico that directly supply U.S. auto and truck manufacturers—provided the materials were melted and poured (or smelted and cast) in those countries and qualify for USMCA preferential treatment. The minimum effective rate on such inputs will remain 25 percent. 

What this Means for Importers 

The Section 232 truck and bus tariffs mark another major expansion of the United States’ industrial-security-driven trade policy.  Companies navigating this new landscape must prepare for enhanced documentation requirements, potential retroactive audits of content declarations, and the interplay of multiple tariff layers under both the automobile and MHDV programs. The new rules also open the door to duty drawback on auto-related parts, though only under specific manufacturing provisions of the Tariff Act of 1930. 

For importers and assemblers, compliance will hinge on precise content tracking, proactive supplier engagement, and strategic use of offset and rebate programs. 

Contributor: Becky Anderson

At Allyn International, we are committed to supporting the global trade community with strategic, forward-thinking solutions to help navigate today’s complex tariff landscape. Whether you have questions about tariffs, trade agreements, or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com, call 239-489-9900, or reach out here.