S&P Global Mobility | new Sections 232 tariffs target truck and bus imports

Summary: New 25% tariffs on trucks and 10% on buses are a strategic push for US-based auto manufacturing. The policy uses a tariff offset to reward domestic assembly, forcing automakers into a complex decision between importing vehicles or building them locally.

A new S&P Global Mobility analysis reveals that President Trump's recently enacted tariffs—25% on trucks and 10% on buses—are less a simple tax and more a complex strategic maneuver to force automotive production back to the US. While citing national security, the policy uses a critical tariff "offset" to reward domestic assembly, creating a high-stakes puzzle for automakers who must now navigate a landscape designed to penalize imports.

Key findings from our analysis include:

1. A Targeted Tariff Structure: The 25% tariff on heavy trucks is strategically weakened for USMCA-compliant vehicles, applying only to the value of non-US content. This directly pressures supply chains in Mexico and Canada, which together account for nearly 35% of the US market for these vehicles.

2. The '3.75%' Lifeline for US Assembly: An extended tariff offset allows automakers to deduct an amount equal to 3.75% of the value of their US-assembled vehicles from their total tariff bill. This provides crucial relief, though our analysis suggests it may not fully cover the costs of reshoring, keeping pressure on manufacturers.

3. Immediate Market Reaction: The policy's impact is already visible, with both GM and Ford citing the offset for lowering their 2025 tariff exposure. The rules also quietly expanded the list of tariffed parts to include components like touch screens, further complicating the import-vs-assemble calculation.

This policy shift represents a forceful attempt to reshape the North American commercial vehicle supply chain.