In a significant move impacting the automotive industry, former US President Donald Trump signed an executive order on Friday, October 18, 2025, extending tariff relief on imported vehicle parts while formalizing new duties on medium and heavy-duty trucks. The order prolongs the 3.75-percent offset program for automakers until 2030, maintaining the percentage without reductions. Simultaneously, a 25-percent tariff on imported trucks and their parts will take effect starting November 1, 2025. This decision follows a Section 232 investigation initiated earlier this year to assess the national security implications of truck imports. Trump has frequently utilized such probes, authorized under the Trade Expansion Act of 1962, to impose tariffs aimed at bolstering domestic manufacturing and addressing perceived trade imbalances. The automotive sector, alongside steel and aluminum industries, has been a focal point of these measures. The extension of the offset program is seen as a continuation of Trump’s April 2025 initiative to ease tariff burdens on US automakers. Under this program, companies importing parts for vehicles assembled in the US can offset 3.75 percent of a vehicle’s list price, a benefit now secured until 2030. Additionally, a similar offset framework is being established for medium and heavy-duty trucks, also extending through 2030. While the new tariff regime imposes steep duties on imported trucks, certain favorable treatments under the US-Mexico-Canada Agreement (USMCA) will remain. For instance, trucks qualifying for USMCA benefits will only face the 25-percent tariff on non-US content. However, imported buses will not receive such favorable treatment and will be subject to a 10-percent tariff. The trade pressures have already impacted Mexico, with its heavy vehicle exports to the US declining by nearly 26 percent year-on-year from January to August 2025. Canada and Mexico continue to negotiate with Washington to mitigate the effects of these tariffs.
Trump extends tariff relief on imported auto parts, formalises truck duties
