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Trump’s administration has initiated a new investigation to assess the possibility of imposing tariffs on imports of trucks.
Donald Trump’s administration has initiated a new investigation to assess the possibility of imposing tariffs on imports of trucks weighing over 10,000 pounds, primarily used for transporting goods, as well as on their parts.
The Department of Commerce announced that it will analyze the national security risks posed by a small group of foreign suppliers that dominate the U.S. market, allegedly due to government subsidies and unfair trade practices. This investigation falls under Section 232 of the Trade Expansion Act and could result in new tariffs if it is determined that the domestic industry cannot meet internal demand.
Heavy truck exporters at risk
The measure could directly affect Mexico, the largest exporter of such vehicles to the U.S., whose exports have tripled since 2019. Canada and Japan are also among the top supplier countries. Additionally, companies like Stellantis, which manufactures Ram heavy trucks in Mexico, and Volvo, which is building a $700 million plant in Monterrey, could face significant repercussions.
The announcement comes at a sensitive time, as an increase in tariffs could raise transportation costs in a context where Trump has pledged to reduce inflation, especially for staple goods like food.
The administration is also considering excluding certain auto parts from the tariffs set to take effect on May 3, particularly those related to metal production and fentanyl in China. Meanwhile, 25% tariffs have already been imposed on imported light vehicles.
This new investigation into heavy trucks adds to other ongoing probes into strategic sectors such as copper, semiconductors, and pharmaceuticals. Conclusions typically take up to 270 days, but the Trump administration has accelerated the process in past instances.
Uncertainty for the automotive industry
The Department of Commerce has opened a public comment period through mid-May to evaluate domestic production capacity, the concentration of foreign suppliers, and the impact of unfair trade practices on the prices of these vehicles and their components.
If the tariffs are implemented, experts warn that costs could be passed on to consumers through higher prices on goods transported by road, including essential products. At the same time, the move could discourage foreign investment in Mexico’s automotive sector, which is crucial for regional trade.
The automotive industry on both sides of the border has reacted with concern, calling for dialogue and warning of potential disruptions to supply chains. Amid geopolitical and trade tensions, this new front could redefine the dynamics of North American automotive trade.
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