On November 1, a new 25% tariff will take effect on all medium- and heavy-duty trucks imported into the United States. Announced by President Trump, this policy marks a significant shift in trade strategy, aimed at shielding domestic manufacturers from what the administration calls “unfair outside competition.”
The impact will be felt across the logistics ecosystem. Mexico, the largest exporter of these vehicles to the U.S., has seen its truck exports triple since 2019, reaching approximately 340,000 units. Under the USMCA, trucks with at least 64% North American content have moved tariff-free—but this new blanket policy could disrupt that balance.
Affected vehicles include delivery trucks, garbage trucks, utility vehicles, buses, and tractor-trailers. Major manufacturers like Stellantis (Ram trucks), Daimler (Freightliner), and Volvo (building a $700M plant in Monterrey) may face new cost pressures. Mexico, home to 14 truck manufacturers and two engine producers, has voiced opposition, citing that its exports average 50% U.S. content.
For logistics professionals, the implications are clear:
• Cross-border fleet planning will require new cost models.
• Procurement strategies may shift toward domestic sourcing.
• Partnerships with manufacturers and carriers must be reevaluated.
At Farelanes, we’re helping clients navigate this evolving landscape with clarity and confidence. Whether you’re a fleet manager, shipper, or supply chain strategist, our platform is built to adapt—just like you.
Source: David Shepardson, Reuters