By: Glenn Shearron, TradeInsights

In an effort to continue the reshoring of manufacturing and protection of US industries, the president has announced the imposition of 25% tariffs on medium and heavy-duty trucks beginning November 1. The decision was made under Section 232 of the Trade Expansion Act.

The decision has already seen stock prices climb for Peterbilt and Kenworth (PACCAR), and Ford. Trucks that meet the USMCA regional value content requirements will continue to move duty free.

USMCA Rules:

Trucks qualify for tariff-free trade only if:

• 64–70% of value originates in North America.
• 75% of engines, axles, and transmissions are North American.
• 70% of steel and aluminum is sourced domestically.

Trucks failing these rules — even from Mexico or Canada — will face the new 25% tariff.

We will continue to monitor this situation and issue updates as needed.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.