US announces 25% tariffs on imported trucks

U.S. President Donald Trump announced on October 7, 2025, a 25% tariff on all imported medium- and heavy-duty trucks starting November 12 2025, aimed at protecting domestic manufacturers from foreign competition. This covers delivery trucks, buses, tractor-trailers, and heavy-duty vocational vehicles. Mexico, the largest exporter, faces significant impact with $15 billion in truck exports at risk, imports tripling since 2019 to about 340,000 units, containing around 50% U.S. content. In 2024, the U.S. imported nearly $128 billion in heavy vehicle parts from Mexico, 28% of all imports, potentially disrupting the North American supply chain and cross-border manufacturing, harming local employment and growth. Mexico warned that this could disrupt trade and prompt retaliatory measures.

China, though not directly listed as a primary affected country, may face indirect impacts through supply chains as a major global exporter of heavy trucks and parts. Trump’s broader tariff policies have imposed up to 125% duties on Chinese imports, and while China’s heavy truck exports to the U.S. are smaller in scale, supply chain restructuring could affect U.S.-China trade. Chinese firms supplying parts assembled in Mexico for export may encounter rising costs. Industry analysis indicates the 2025 Trump trade war overall will increase U.S. household taxes by nearly $1,300 and escalate U.S.-China trade tensions.

Affected companies include Stellantis (building Ram trucks and commercial vans in Mexico) and Volvo Group (investing $700 million in a new Mexican truck plant opening in 2026). China, as a parts supplier to Mexico, may see supply chain shifts or cost increases, reducing export competitiveness. Overall, this tariff heightens global trade uncertainty, with direct economic hits heavier on Mexico, while effects on China are more indirect and long-term.