Effective November 1, 2025, a new Presidential Proclamation imposes additional duties under Section 232 on certain vehicle imports:
- 25% tariff on imports of medium and heavy-duty trucks and truck parts
- 10% tariff on imports of buses, including school buses, transit buses, and motor coaches.
Applicability Under USMCA
- For non-USMCA-eligible trucks, the entire vehicle is subject to the 25% tariff.
- For USMCA-eligible trucks, the tariff applies only to the value of non-U.S. content.
Currently, USMCA-eligible goods are duty free until the Department of Commerce and U.S. Customs and Border Protection establish a process to approve and report on U.S. vs. non-U.S. content.
Import Adjustment Offset
Vehicle manufacturers may qualify for an import adjustment offset equal to 3.75% of the aggregate value of all vehicles assembled in the U.S. between November 1, 2025, to October 31, 2030.
Duty Rate Overview
- Medium- and heavy-duty vehicles (HTSUS subdivision b): +25% duty (9903.74.01).
- Buses and similar vehicles (HTSUS subdivision c): +10% duty (9903.74.02).
- Vehicles with U.S. content (subdivision d): +25% duty on non-U.S. content only (9903.74.03).
- Parts (subdivisions i & j): +25% duty (9903.74.08 and 9903.74.09).
- Vintage vehicles (25+ years old): Standard duty (9903.74.07).
Duty Rate by Origin Changes – Truck parts
- UK: 10% on truck parts
- EU and Japan: 15% or standard duty, depending on value
Duty Exemptions
Medium and heavy-duty vehicles and parts are exempt from additional duties under other headings, including:
- Semi-finished copper and copper-intensive products.
- Aluminum and derivative aluminum products.
- Iron or steel and derivative products.
- Wood products.
- Products of Canada, Mexico, Brazil or India under specific headings.
For more information, review the White House Fact Sheet and Presidential Proclamation.
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