Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses Into the United States
This proclamation uses broad national-security authorities (Section 232) to tighten imports of medium- and heavy-duty vehicles (MHDVs), their parts (MHDVPs), and buses. It declares that current import levels threaten the United States and imposes steep tariffs to reduce foreign reliance, with the aim of strengthening domestic production, supply chains, and defense readiness. The plan combines a flat tariff on most MHDVs/MHDVPs (25%) and buses (10%), with special rules for vehicles that qualify for USMCA treatment, and a defined program of offset benefits for US-assembled vehicles and engines to partially offset those tariffs. The approach is designed to push the domestic industry toward greater production in the United States, expand jobs, and bolster national security through more self-reliant trucking and bus sectors, while permitting some expansion of the tariff scope over time. Key features include: (1) a 25% tariff on most MHDVs and MHDVPs and a 10% tariff on buses, effective for entries on/after November 1, 2025; (2) a USMCA-content framework that can limit or offset tariff exposure based on the share of US content; (3) an “import adjustment offset” program allowing manufacturers to shield part of their tariffs by crediting offsets tied to US-made content (3.75% of the value of US-assembled MHDVs, with parallel treatment for engines) during 2025–2030; (4) authority to add additional MHDVPs to the tariff list and to align with related proclamations, plus enforcement and administrative provisions (CBP administration, HTSUS adjustments, and stacking rules); and (5) exemptions for very old models (25 years or older) and other practical implementation details.
Key Points
- 1Tariffs and effective date
- 2- Imposes a 25% ad valorem tariff on imports of MHDVs and MHDVPs (with the exception of buses and vehicles in HTSUS heading 8702, which face a 10% tariff). These tariffs apply to entries on/after 12:01 a.m. EDT on November 1, 2025 and remain in place unless changed.
- 3USMCA content framework
- 4- For MHDVs (excluding buses), importers may document US content in each model. The tariff can then be applied to the non-US content only, effectively favoring US-made portions of a vehicle. Non-US content is total value minus US-content value. Imports of certain MHDV parts that qualify for USMCA preferential treatment are exempt from the added tariff until a process is established to apply the tariff only to non-US content.
- 5Import adjustment offset program (MHDVs and engines)
- 6- Establishes an offset program to reduce tariff liability for MHDVs and related components. For MHDVs assembled in the United States, manufacturers can receive an import adjustment offset equal to 3.75% of the aggregate value of all US-assembled MHDVs (annually, Nov 1, 2025–Oct 31, 2030). The offset reflects the total tariff that would be owed on 15% of the MHDV’s value (the portion considered non-US content under the tariff design). Engine manufacturers have a parallel process. Offsets are usable only against specified tariff liabilities and must be for MHDVs or engines assembled in the United States.
- 7Process to add more MHDVPs and alignment with other proclamations
- 8- Allows the Secretary to include additional MHDVPs within the tariff scope if doing so would reduce the national security threat. The proclamation also directs alignment with Proclamations 10908 (Automobiles and Parts) and 10925, including adjustments to the way duties interact with USMCA rules and prior tariff programs. It also covers enforcement mechanisms, monitoring, and potential revisions if the policy’s effectiveness or national security needs change.
- 9Administrative and enforcement provisions
- 10- Requires HTSUS (Harmonized Tariff Schedule) modifications to implement the proclamation, through notice and coordination with the U.S. International Trade Commission and Customs and Border Protection. It authorizes the agencies to issue regulations and guidance, and to take steps to prevent circumvention or undermine of the tariff program. There are stacking rules for tariffs and a 25-year grandfather exemption for certain older models; non-compliant declarations can trigger full tariff application on the affected value.