On September 25, President Donald Trump declared new tariffs on heavy trucks, announcing via social media that the move aims to safeguard U.S. manufacturers.
However, industry analysts are seeking further information on how these tariffs will affect the market.
The new measures include a 25% tariff on heavy trucks, set to take effect on October 1, as stated in Trump’s post on Truth Social. Additionally, the president outlined a plan for a 30% tariff on furniture, a 50% tariff on cabinets and bathroom vanities, and a 100% tariff on branded drugs from manufacturers lacking U.S. plants under construction, which he detailed in separate posts.
Trump emphasized, “To safeguard our Great Heavy Truck Manufacturers from unfair competition abroad, I will impose a 25% Tariff on all heavy trucks constructed outside the U.S., effective October 1, 2025. This will protect U.S. companies like Peterbilt, Kenworth, Freightliner, and Mack Trucks, ensuring our truckers remain financially robust for national security reasons.”
These tariffs are an addition to existing tariffs on steel, aluminum, and other goods, as the administration extends the application of national security trade powers under Section 232.
Mixed Reactions from Heavy-Duty Manufacturers
Paccar, known for producing most of the Peterbilt and Kenworth models in the U.S., along with the Volvo Group, which manufactures trucks in Virginia, seem to be prime beneficiaries. Shares of both companies rose, with Paccar improving by 5.16% and Volvo Group by 4.11% by market close.
While Paccar looks forward to the details of the tariffs, Senior Director of Investor Relations Ken Hastings expressed optimism for improved conditions for U.S. manufacturers. He mentioned, “We’re eager to explore the details of the MD and HD Truck Section 232 tariff announcement as they become available.”
In contrast, the Traton Group, which sells International Motors and assembles many trucks in Mexico, appears to face adverse impacts, with shares declining by 12.65% as of market close. An International Motors spokesperson commented, “We await the details regarding the 232 tariffs.”
Responses from Trade Associations
Industry trade associations are also assessing the newly announced tariffs. The National Truck Equipment Association withheld comments while they await clarity from the White House or the Department of Commerce.
The American Trucking Associations referred to a May 16 letter they sent urging the Commerce Department to refrain from imposing Section 232 tariffs on heavy-duty trucks and parts, citing potential cost increases and negative impacts on jobs and the economy. They noted that the majority of imports come from Mexico under the USMCA framework, raising questions about how these new tariffs will interact with existing agreements.
