The United States will enforce a 25% tariff on all medium and heavy-duty truck imports starting November 1, 2025. The new duties affect trucks imported primarily from Canada and Mexico, which together supplied over 2.45 lakh vehicles valued at approximately $20.1 billion in 2024.
Medium-duty trucks generally weigh between 14,000&ndash;33,000 pounds, while heavy-duty trucks exceed 33,000 pounds. These commercial vehicles serve key sectors including logistics, construction, and waste management. Although these trucks make up just 5% of the US automotive market, the country accounts for 80% of North America&rsquo;s demand.
The tariffs are expected to raise Class 8 truck prices from around $170,000 to over $212,000 before federal taxes. Original equipment manufacturers (OEMs) with operations in Canada and Mexico, such as Navistar, Volvo, and Daimler, will face immediate impacts. Many may seek to localise final assembly to avoid tariffs, while electric truck manufacturers, including Tesla, could benefit.
For India, the impact is mainly on auto components, as Indian OEMs have a limited presence in the US truck market. India exported $6.79 billion in auto components to the US in 2023-24, with 15&ndash;20% potentially affected by the tariffs. Components linked to commercial vehicles will see the most impact, while operations in Canada and Mexico will mitigate some exposure.
The US-Mexico-Canada trade agreement remains a key framework for importers aiming for preferential tariff treatment.

US to levy 25% tariffs on medium and heavy-duty truck imports starting November 2025

US Imposes 25% Tariff on Trucks from Nov

US to levy 25% tariffs on medium and heavy-duty truck imports starting November 2025

October 7, 2025 | 10:45 IST