Last Updated October 31, 2025
The trucking industry faces another financial obstacle as new heavy-duty truck tariffs officially take effect Nov. 1. The decision, which falls under Section 232 of the Trade Expansion Act, impacts most imported medium- and heavy-duty trucks.
While the move is designed to strengthen domestic manufacturing, it’s expected to have massive effects across the industry. The 25% tariff is set to increase equipment prices, tighten margins, and create additional challenges for smaller carriers already struggling through a tough freight market.
Key Takeaways
- 25% tariffs on imported medium- and heavy-duty trucks and parts officially take effect Nov. 1 under Section 232 of the Trade Expansion Act.
- USMCA-qualified imports are exempt, but non–North American vehicles and components will face full duties.
- Equipment and parts costs are expected to rise 5–10%, tightening margins for carriers already struggling with high expenses and a weak freight market.
- Industry experts warn of short-term disruptions, with potential supply shortages and delayed recovery despite long-term goals to boost U.S. manufacturing.
What the New Semi-Truck Tariffs Include
On Oct. 17, 2025, the Trump Administration announced that a 25% tariff will apply to imports of medium- and heavy-duty trucks, engines, transmissions, tires, and chassis, along with a 10% tariff on imported buses.
Imports that qualify under the United States-Mexico-Canada Agreement (USMCA) will be exempt, while equipment that does not qualify under USMCA will be fully taxed. Vehicles assembled or partially produced in North America may still face added taxes, but not to the same extent as those fully manufactured overseas.
“For medium- and heavy-duty trucks that qualify for preferential tariff treatment under the USMCA, the tariff will only apply to the value of the non-U.S. content in the vehicle,” the official press release read.
Key parts and equipment, including engines, transmissions, tires, and chassis, will make up the bulk of the tariffs.
Why the Tariffs Are Being Enforced
According to the administration, the tariffs are intended to protect U.S. manufacturing and supply chain resilience.
Officials claim that being too dependent on imported heavy trucks and parts could threaten domestic production capacity and national security.
Imports currently make up 43% of all U.S. truck parts and nearly 50% of all Class 8 truck sales (medium- and heavy-duty truck parts) in the U.S. market.
With the freight and logistics industries being notorious for thin margins, the belief is that the substantial 25% tariffs will incentivize more companies to invest in American assembly and manufacturing plants.
What the Tariffs Mean for the Trucking Industry
The most immediate effect will likely be an increase in equipment costs. Analysts estimate that retail truck prices could rise between 5% and 10%, depending on the manufacturer and model.
For U.S.-based truck part makers, the tariffs could create a short-term advantage as more companies turn to domestic producers. However, for fleets that rely heavily on imported equipment or parts, higher acquisition and maintenance costs could become a major challenge.
A ripple effect may extend beyond truck sales as well. Parts suppliers, repair shops, and leasing companies may experience tighter margins as their costs climb. Smaller carriers, already dealing with high fuel prices and a sluggish freight market, could feel enormous pressure.
Industry Reactions and Concerns
Many within the trucking sector have voiced concerns that the timing couldn’t be worse. The market is still recovering from the Great Freight Recession, and carriers have faced a string of bankruptcies in 2024 and 2025. The added burden of tariffs could slow recovery efforts and strain operations further.
Volvo Group, a Swedish-based commercial truck manufacturing company, is forecasting a significant reduction in North American sales. According to President and CEO Martin Lundstedt, there is major uncertainty, with North American customers forced into “wait-and-see mode.”
Critics also claim that while the tariffs aim to strengthen domestic production, the benefits may take years to come to fruition. In the short term, limited manufacturing capacity in the U.S. could cause further supply shortages and longer lead times for new equipment.
Looking Ahead
Industry experts expect it will take several months before the full impact of the new tariffs is felt across the supply chain. In the meantime, carriers should reassess financial plans and equipment replacement schedules, monitor inventory levels, and manage cash flow more carefully.
Fleets planning to purchase new trucks may move quickly to buy before prices rise further. Those with older equipment may hold off until the market stabilizes.
While the long-term goal is to boost American manufacturing and reduce dependence on foreign imports, the short-term outlook remains uncertain. The trucking industry, already navigating high costs and tight margins, will now need to adapt once again to a shifting economic landscape.
Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.
