Trump signs proclamation imposing tariffs on truck and bus imports

Washington — President Trump on Friday signed a proclamation to impose 25% tariffs on the imports of all medium- and heavy-duty trucks, as well as the parts to make those trucks, and 10% tariffs on all imported buses, such as school buses and city buses.  

The president said last month he would impose a 25% tariff rate on all medium- and heavy-duty trucks imported into the U.S., as he seeks to protect U.S. companies from foreign competitors. The tariffs on parts are also meant to discourage vehicle manufacturers from using only foreign materials.

The 25% tariff on all truck imports will apply to all Class 3 to Class 8 vehicles, senior administration officials said on a call with reporters ahead of the signing, speaking on the condition of anonymity. The Trump administration will also provide a credit for vehicle manufacturers who import some parts into the U.S. so they can make the vehicle in the U.S., in order to offset the tariffs, one of the senior administration officials said. 

“The idea here is we want to incentivize domestic manufacturing of vehicles, and one way to do that is to say, ‘Alright, we understand that not 100% of a vehicle can be used with goods that are already here in the United States,'” the official said. “And so, for the parts that do need to be imported, we are essentially allowing a credit so that they can offset any tariff liability that they would accrue because they’re importing parts just to manufacture in the United States.”

The credit will depend on what portion of the vehicle’s parts are imported. 

“So we’ve designed this program to allow automakers who are building things here, like the president wants, that are making their vehicles here with American labor, paying American workers good-paying wages, they are able to continue to be cost competitive and expand production here,” a second official said.