A 25% tariff on imported trucks and select vehicle components, taking effect Thursday, could drive U.S. commercial truck prices up by 9% and slash new vehicle demand by as much as 17%, according to industry experts.
The tariff impacts roughly one-third of U.S. commercial vehicle sales, particularly affecting imports from Canada and Mexico, where over 40% of Class 8 trucks originate. President Donald Trump’s administration has already imposed steep tariffs on Chinese goods, as well as on Canadian and Mexican products, alongside hikes on steel and aluminum imports.
Manufacturers are bracing for disruption. S&P’s Andrej Divis notes potential shifts in production locations to mitigate the impact. With limited capacity to absorb a 25% cost increase, suppliers are expected to pass costs on to buyers.
The American Trucking Associations estimates the added cost per truck could reach up to $35,000, threatening to put a major pause on commercial market growth expected in 2025.
