The United States Saturday began enforcing new tariffs on medium and heavy trucks, while partially easing duties for vehicles entering the country under the United States–Mexico–Canada Agreement (USMCA).
The move includes a 25 percent tariff on trucks and a 10 percent tariff on buses, following a Section 232 investigation launched by the administration of President Donald Trump to assess the national security implications of such imports.
Invoking the Trade Expansion Act of 1962, Trump has used similar measures in recent years to impose tariffs on various goods in a bid to protect domestic industries and counter what he views as unfair trade practices, reports Al-Rai daily.
The steel and aluminum sectors, for instance, were hit with 50 percent duties, while cars faced a 25 percent tariff.
However, the White House clarified in October that the new tariffs on trucks would not be added to existing duties on steel, aluminum, copper, cars, or lumber, nor would they be subject to other partner-specific trade fees.
Despite these assurances, the decision has sparked concern among U.S. trucking associations representing more than 37,000 companies, which warned that the tariffs could hurt manufacturers, dealers, and the broader supply chain by reducing truck sales.
Economists note that the majority of U.S. truck imports originate from Canada and Mexico. According to an October report by United Overseas Bank, heavy trucks from Mexico account for over 70 percent of U.S. imports, while Canadian imports make up about 20 percent.
Under the new system, the 25 percent tariff will apply only to non-U.S. components in trucks that otherwise qualify for preferential treatment under the USMCA.
Trade tensions are already being felt south of the border, as Mexico’s heavy vehicle exports to the United States declined nearly 26 percent year-on-year between January and August.
The country’s economy also contracted by 0.3 percent in the third quarter, weighed down by a slowdown in manufacturing.
Mexico remains in negotiations with the Trump administration in an effort to reach an agreement that could lessen the impact of the sweeping U.S. tariffs.
