Effective November 1, Section 232 tariffs will apply to imported medium- and heavy-duty trucks and buses: 25% on Class 3 to Class 8 trucks and their parts, and 10% on buses. Under USMCA, trucks may receive preferential treatment, with only non-U.S. content subject to the tariff. However, this duty-free status for qualifying parts is temporary.
USMCA-compliant truck parts will remain exempt until the Secretary of Commerce establishes a process to apply tariffs to their non-U.S. content.
Buses are excluded from USMCA benefits and will be fully taxed. Parts from Canada and Mexico may enter duty-free if they meet USMCA origin requirements.
Additional Notes:
- U.S. assembled trucks may qualify for a 3.75% Manufacturer’s Suggested Retail Price (MSRP) offset if tariffs were paid on qualifying parts.
- Used and remanufactured trucks and buses are subject to the new tariffs only if manufactured within the last 25 years; older vehicles are exempt.
- Aluminum and steel from Canada or Mexico may be eligible for a reduced 25% tariff, subject to production limits.
Products subject to tariffs under this proclamation will not be subject to additional or existing sectoral tariffs on steel, aluminum, copper, automobiles and automobile parts, or lumber. They will also be exempt from reciprocal tariffs and those imposed on Canada, Mexico, Brazil, or India.
Read the full proclamation here. If you have questions on how these changes may impact your imports, please contact your Deringer representative.
Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.
