However, these new tariffs will not be applied in full to trucks from Canada and Mexico, as long as their production meets the criteria established in the free trade agreement between the three countries (T-MEC), according to a US official.
In this case, only parts not made in the United States will be subject to a 25% tariff. But for now, they remain exempt while the Department of Commerce determines how to apply this tax.
According to the firm Capital Economics, the United States imports 78% of its trucks from Mexico and 15% from Canada.
On the other hand, in the case of buses, the 10% will be applied entirely to vehicles from the two neighboring countries, regardless of whether they are included in the T-MEC or not.
The White House took advantage of this decree to respond to a request from the automobile industry, and extended until 2030 the 3.75% deduction in the list price that manufacturers can apply to cars made in the United States that contain imported parts.
Initially scheduled for one year, the deduction was added to the automotive sector’s request in order to reduce the impact of tariffs on car manufacturers. It will apply under the same conditions to trucks manufactured in the United States.
