Trump sets truck tariffs and extends relief for automakers
Add Axios as your preferred source to
see more of our stories on Google.
New trucks at TEC Equipment in Dixon, Calif. Photo: Justin Sullivan/Getty Images
The White House finalized a new tariff of 25% on trucks and announced fresh relief measures for U.S. automakers.
Why it matters:Both announcements are huge for the auto industry that has been slammed by President Trump's trade policy.
Driving the news: Trump signed a proclamation on Friday evening that imposed fresh tariffs on the heaviest trucks on the road that are set to go into effect on Nov. 1.
- Trump had previously hinted that the administration would impose tariffs on trucks under Section 232, a trade authority that is not facing legal challenges.
- The truck tariffs apply to Class 3 through Class 8 vehicles, or commercial medium- and heavy-duty trucks.
- Foreign-made pickup trucks and other SUVs have been subject to 25% tariffs since April, including additional tariffs on materials like aluminum and steel.
- Imports of buses, including school buses, transit buses and motor coaches, will be subject to a 10% tariff.
The intrigue: The proclamation also extended a tariff relief program announced earlier this spring.
- Automakers will receive reimbursements for tariffs on auto parts — up to 3.75% of the value of a U.S.-manufactured car — through 2030.
- Previously the program was set to become less generous next year before expiring in 2027.
What they're saying: "The change is based off conversations we've had with people in the industry," a senior White House official told reporters on Friday.
- "This is our assessment of what the U.S. industry needs to stay competitive ... and expand domestic production," the official added. The White House said that it believed that automakers should be able to "offset some, but not all, of the parts liability that they have."
Of note: The proclamation also establishes a similar relief program for auto and truck engine manufacturers, "designed to reward companies that make their engines in the United States," a senior administration official said.
The big picture: The relief is something like an acknowledgement of the pain global trade wars are inflicting on American industry.
- The auto sector is the latest to see some relief, with a tariff bailout reportedly on the way for farm country.
What to watch: The White House has defended its trade policies, despite earlier signs that tariffs are resulting in price increases.
- "Because we already have robust domestic production in this country and because we've designed a very fair import adjustment offset program, we do not expect to see any sort of price increases as a result of these tariffs," the official said, referring to the possibility of higher prices on trucks.
