Fact Sheet: Presidential Proclamation on Heavy-Duty Trucks and Buses

This factsheet summarizes the Presidential Proclamation titled 'Adjusting Imports of Medium and Heavy-Duty Vehicles, Medium and Heavy-Duty Vehicle Parts, and Buses Into the United States' issued on October 17, 2025. It is intended for Customs Brokers, Importers, and Trade Compliance professionals.

Date Issued: October 17, 2025

• Legal Basis: Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862)

• Effective Date: November 1, 2025 at 12:01 a.m. EDT

• Products Affected: Medium and Heavy-Duty Vehicles (Class 3-8), Vehicle Parts, and Buses

Key Findings and Rationale

• Imports of medium and heavy-duty vehicles, parts, and buses threaten to impair U.S. national security.

• These vehicles are essential for defense, logistics, emergency response, and infrastructure resilience.

• High import penetration undermines domestic manufacturing (43-50% market share).

• Supply chains for critical components such as engines, transmissions, and batteries remain vulnerable.

Tariff Measures

(Category - Tariff Rate / Measure)

Medium and Heavy-Duty Vehicles (MHDVs) - 25% ad valorem duty on imports

Buses - 10% ad valorem duty (HTSUS 8702)

USMCA Vehicles - Tariff applies only to non-U.S. content upon proof

USMCA Parts - 25% deferred until content methodology is published

Offsets for U.S. Manufacturers

An Import Adjustment Offset provides a 3.75% credit on the total value of U.S.-assembled medium and heavy-duty vehicles from November 2025 through October 2030. A similar offset applies for U.S.-assembled engines. Only vehicles that undergo final assembly in the United States qualify.

Annex I - Tariff Coverage Summary

(HTSUS Subheading - Description/Notes)

9903.74.01 - Medium and Heavy-Duty Vehicles (MHDVs) - Trucks

9903.74.02 - Buses (HTSUS 8702)

9903.74.03 - USMCA-qualified MHDVs (tariff on non-U.S. content)

9903.74.08 - MHDV parts subject to 25% duty

9903.74.09 - Knock-down kits and assemblies

9903.74.07 - Exemptions for vehicles 25 years or older

Industry Impact

The proclamation is designed to strengthen U.S. manufacturing of heavy-duty trucks and parts, enhance supply chain resilience, and support national security. Importers relying on foreign components may face cost increases, while U.S.-based assemblers benefit from offset and exemption programs.

Additional Notes

• Tariffs under this proclamation do not stack with other Section 232 duties (e.g., steel, aluminum, copper).

• Vehicles or buses 25 years or older are exempt.

• The Secretary of Commerce may expand the list of covered parts.

• Importers must accurately report U.S. content to qualify for reduced duties.

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We’ve got you covered. We understand the challenges these proposed tariffs may bring, and as your trusted partner, we will work closely with you to adjust your strategies and stay compliant throughout.

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