The tariff, revealed via a Truth Social post, was presented as essential to shield American truck makers such as Peterbilt, Kenworth, Freightliner and Mack from “unfair outside competition”. Trump linked the policy to national security, stating:
“We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!”
Industry analysts note that key details remain unclear. It is not certain whether trucks built in Mexico and Canada will be exempt under the US-Mexico-Canada Agreement (USMCA), nor whether the levy applies only to fully assembled vehicles or also to imported components.
If no exemption is granted for Mexico, the impact could be severe: nearly four-fifths of imported heavy trucks come into the US from Mexican plants, according to Capital Economics.
Global truckmakers stumble, US-based rivals climb
The announcement immediately rattled markets. Shares in Daimler Truck and Traton fell sharply on Friday, with Citi analysts estimating the tariff could cost Daimler up to €800 million. Volvo, which already manufactures trucks in the US, saw its shares rise amid speculation that it may gain an advantage.
The American Trucking Associations warned the tariff would drive up costs for hauliers already facing inflation and weak freight volumes. Jason Miller, a supply-chain management professor quoted by Commercial Carrier Journal, said he was “very confident” the new duty would override USMCA protections.
Fleet operators fear the price of a new heavy truck — already averaging more than $170,000 before taxes — could rise substantially. Including the 12% federal excise tax, the total cost could climb close to $240,000, according to industry estimates.
Dealers have cautioned that higher prices could depress sales and force layoffs in the dealership network.
Trade economists also highlight contradictions in the policy. Previous tariffs on steel and aluminium have already raised input costs for US truck makers, meaning American-built models can sometimes be more expensive than imported ones. Analysts warn that additional duties could dampen demand in the freight sector, undermine a fragile recovery in volumes, and ultimately feed through into higher transport and consumer prices.
Legal challenges are also possible. Trump’s decision to invoke national security grounds under Section 232 has drawn scepticism, with critics questioning whether imports of heavy trucks can plausibly be considered a defence risk.
