As November approaches, a reminder that new U.S. tariffs will take effect November 1, following an executive order signed by President Donald Trump last Friday.

Under the new order:

• Medium- and heavy-duty trucks will face a 25% import duty
• Buses will be subject to a 10% levy

The White House cites national security concerns as the basis for these new tariffs. According to its fact sheet, these duties will not stack on top of existing sector-specific or country-based tariffs.

The changes will primarily affect Class 3 through Class 8 vehicles, including school buses, transit buses, and cargo trucks. Tariffs will also extend to associated parts such as engines, transmissions, tires, chassis, and other essential components used in assembling medium- and heavy-duty vehicles.

Tariff Offsets and Trade Agreement Exceptions

The White House has outlined several measures to offset or reduce tariff impacts under certain trade conditions:

• USMCA Eligibility:
  Heavy-duty trucks qualifying under the United States–Mexico–Canada Agreement (USMCA) will only pay the 25% duty on non-U.S. content, with eligibility determined by the Commerce Department.
  Medium-duty trucks compliant with USMCA standards will be exempt from the new tariff until a review process is established.
• Domestic Assembly Incentives:
  Truck manufacturers completing final assembly in the U.S. can apply to offset 3.75% of tariff costs annually for five years from the effective date.
• Automotive Supply Chain Adjustments:
  Due to overlap between passenger vehicle and truck production, auto manufacturers can also reduce their tariff burden for up to five years, with a similar 3.75% annual offset available for vehicles assembled domestically.
• Steel and Aluminum Adjustments:
  The order authorizes the Commerce Department to reduce existing 50% tariffs on steel and aluminum by up to half for companies that manufacture in Canada or Mexico and supply U.S. automakers—provided materials meet USMCA origin requirements.

Lastly, Friday’s executive order follows a Section 232 investigation initiated earlier this year, part of ongoing federal reviews assessing the national security implications of key imports. Similar investigations have led to targeted tariffs on products such as furniture and lumber.