US President Donald Trump will impose a 25 per cent tariff on imported medium- and heavy-duty trucks starting November 1, aiming to boost domestic manufacturing. The move follows a federal investigation into truck imports, reports New York's FreightWaves.

The tariff stems from a Commerce Department probe under Section 232 of the Trade Expansion Act, which allows import taxes on goods deemed vital to national security. Mr Trump said the measure will benefit US manufacturers such as PACCAR and Ford.

PACCAR, parent of Peterbilt and Kenworth, saw its stock rise following the announcement. Ford also gained modestly, as domestic producers are expected to gain a competitive edge over foreign rivals.

Trump had previously signalled duties would begin October 1, but the new date reflects a continuation of his broader tariff strategy to support US industry.

The US imports most of its medium- and heavy-duty trucks from Mexico, which exported 159,466 units in 2024, with 95.5 per cent bound for the US, according to Anpact, Mexico's truck and bus producers' association.

Anpact members include Freightliner, Kenworth, Navistar, Hino, International, DINA, MAN SE, Mercedes-Benz, Isuzu, Scania, Shacman Trucks, Foton, Cummins, Detroit Diesel, Daimler Buses Mexico and Volkswagen Buses.

Under the USMCA, trucks qualify for tariff-free movement if at least 64 per cent of their value originates in North America, rising to 70 per cent in future. Key components must contain 75 per cent regional content, and 70 per cent of steel and aluminium must be sourced domestically.

Vehicles failing to meet these thresholds will face standard import duties, meaning Trump's 25 per cent tariff could apply even to trucks from USMCA partners Mexico and Canada.