US Imposes New 25% Tariff on Medium and Heavy Duty Trucks Exempting USMCA Partners Mexico and Canada

Welcome to Mexico Tariff News and Tracker, your trusted source for the latest on US-Mexico trade and tariffs. Big news this week: On November 1st, the Trump administration is set to impose a 25% tariff on imported medium- and heavy-duty trucks and their parts, with a 10% duty on buses, according to CBT News. These duties apply to vehicles in US Classes 3 through 8—covering everything from large pickups to tractor-trailers. There’s a notable exception: trucks and parts imported from Mexico and Canada under the USMCA will be exempt from these new levies, as confirmed by Zanders Group, though buses do not qualify for this relief. This policy shift is framed as a national security move, aiming to encourage more vehicle production within the United States and reduce reliance on foreign manufacturing, especially from Mexico, which sent nearly 245,000 trucks to the US last year. At the same time, US automakers assembling vehicles domestically—including those using imported parts—will continue to receive tariff relief through 2030. According to Detroit Free Press and Electrive, manufacturers can reclaim up to 3.75% of the retail price for vehicles built in the US, offsetting some of the higher costs from imported components. This applies to both traditional and electric vehicles, though the exact amount of relief depends on the share of US or USMCA-sourced parts in each vehicle. If at least 85% of a vehicle’s content is domestic or from USMCA countries, it’s fully exempt; those with less domestic content still face tariffs on a portion of their value. While these measures are intended to boost US manufacturing, they’ve sparked concern among industry groups. The US Chamber of Commerce warns that new tariffs could disrupt long-standing supply chains with key allies like Mexico, Canada, Japan, and Germany, none of whom pose a national security threat, according to Electrive. Analysts also caution that higher import costs may drive up prices for commercial vehicles used in construction and freight, potentially squeezing businesses that rely on these trucks. It’s a pivotal moment for US-Mexico trade relations. Mexico has just surpassed China as the top US trade partner, with over $427 billion in annual imports spanning auto parts, electronics, and medical equipment, according to the American Conference. Yet, as Mexico Business News points out, uncertainty remains high—new US tariffs have been imposed on semiconductors and other goods, and the broader trade relationship is in flux, with nearshoring trends and Chinese companies increasingly looking to Mexico as a manufacturing and export base. As the calendar turns to November, US companies and their Mexican counterparts will be watching closely to see how these tariffs play out. Further legal and diplomatic challenges—including a Supreme Court review of the administration’s use of emergency trade authorities, according to CBT News—could still reshape the landscape. Thank you for tuning in to Mexico Tarif This content was created in partnership and with the help of Artificial Intelligence AI.