Trump's 25% Tariff on Imported Trucks Heightens Supply Chain Risks

Freightliner semi trucks (Photo: Ohiotrucks / Phaata)

In an announcement last Thursday (Sept. 25), President Donald Trump unveiled wide-ranging new tariffs on imported heavy-duty trucks, furniture, and pharmaceuticals, scheduled to take effect this Wednesday (October 1).

Washington said it will impose a 25% import tariff on all heavy-duty trucks, aimed at boosting domestic manufacturing.

On social media, Trump wrote: “In order to protect our Great Heavy Truck Manufacturers from unfair outside competition, I will be imposing, as of October 1, 2025, a 25% Tariff on all ‘Heavy (Big!) Trucks’ made in other parts of the World.” “Therefore, our Great Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions.”

According to the International Trade Administration, Mexico was the largest exporter of medium- and heavy-duty trucks to the U.S. last year, followed by Canada, Japan, Germany, and Turkey. It remains unclear whether these tariffs will apply to trucks manufactured in Canada or Mexico under the United States-Mexico-Canada Agreement (USMCA).

U.S. Chamber of Commerce Objects

The U.S. Chamber of Commerce noted that imports of commercial trucks and the parts used in their production are sourced primarily from U.S. allies.

“The top five import sources (by customs value) are Mexico, Canada, Japan, Germany, and Finland, all of which are allies or close partners of the United States posing no threat to U.S. national security,” the chamber said in a May press release. “The U.S. Chamber contends that manufacturers should not be penalized with tariffs on imports from Mexico and Canada after making significant investments and adjustments to overcome [supply chain] challenges.”

The market backdrop shows that truck sales have slowed for much of the year. According to ACT Research, as of August, Class 8 truck orders had fallen by about 24% compared to the same month in 2024.

In addition to trucks, Trump also announced a 100% tariff on imported branded or patented drugs (unless the company is building a plant in the U.S.); and a 50% tariff on kitchen and bathroom cabinets.

“The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside Countries,” Trump wrote on Truth Social.

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Source: Phaata.com (According to Freight Waves)

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