U.S. Announces New Duties on Medium- and Heavy-Duty Vehicle Imports

The new import tariff, which comes into effect on November 1, aims to achieve 80% U.S. domestic market share for American-produced vehicles.

As of November 1, 2025, the United States will impose new duties on imports of medium- and heavy-duty vehicles (MHDVs), their parts (MHDVPs), and buses.

This update was announced in a Presidential Proclamation on October 17, 2025, and amends Proclamation 10908, issued on March 26, 2025, which established Section 232 tariffs on autos and auto parts.

These new import tariffs follow a national security investigation by the Department of Commerce that identified high import levels and supply chain vulnerabilities in this sector.

New duty rates and implementation date

The proclamation introduces two key new duty rates:

• 25% ad valorem duty to all medium- and heavy-duty vehicles (such as trucks) and key MHDVPs specified in Annex I of the proclamation.
• 10% ad valorem duty to buses and other vehicles classified in HTSUS heading 8702.

These new duty rates are in addition to any other existing duties, taxes, or fees, but do not stack with other major tariffs (such as Section 232 tariffs on steel or aluminum).

They apply to goods entered for consumption on or after 12:01 a.m. Eastern Daylight Time (EDT) on November 1, 2025. 

Domestic incentives and USMCA treatment

To strengthen domestic production and supply chain resilience, the proclamation includes measures to mitigate the tariff impact on U.S. importers and manufacturers.

These measures include:

Import adjustment offset

Manufacturers that assemble medium- and heavy-duty vehicles in the U.S. can qualify for an import adjustment offset between November 1, 2025, and October 31, 2030.

The offset equals 3.75% of the total value of their U.S.-assembled vehicles, which reflects the duty impact on imported parts that account for 15% of a vehicle’s value.

A similar program will also apply to manufacturers that assemble MHDV engines in the U.S., using the same rules and percentage rate.

USMCA qualification

For medium- and heavy-duty vehicles (excluding buses under HTSUS heading 8702) that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), the 25% tariff may be applied exclusively to the value of the non-U.S. content of the vehicle.

For individual parts (MHDVPs) that qualify under the USMCA, the extra duty will not apply until the Secretary of Commerce and CBP establish a process to calculate non-U.S. content.

However, knock-down kits or equivalent parts packages will remain subject to the full additional duty, regardless of USMCA status.

Trade rules and requirements

The proclamation also addresses broader trade concerns by conforming the new MHDV tariffs with the existing Section 232 automobile tariffs and establishing new documentation standards for parts:

Part classification and certification

Importers now have a process to declare a part as subject to either the MHDVP tariff or the existing automobile parts tariff, provided certain conditions are met.

This requires a certification from the importer of record attesting that the part is used for U.S.-based production or repair activity.

Steel and aluminum tariff modification

The Secretary of Commerce is authorized to modify (reduce by up to half the applicable rate) existing Section 232 tariffs on steel and aluminum for producers operating in Canada or Mexico who supply U.S. automobile or MHDV manufacturers.

The adjusted rate, however, cannot be lower than 25%. 

Drawback Claims

Only manufacturing drawback claims are available with respect to the new duties on MHDVPs and automobile parts. 

The Secretary of Commerce is authorized to adjust a company's import adjustment offset amount to prevent companies from receiving double benefits (both the offset credit and the drawback refund) for parts used in exported, U.S.-assembled vehicles.

Next steps for vehicle importers in the U.S.

With the tariffs coming into effect on November 1, 2025, vehicle importers are advised to take immediate action to manage compliance and costs.

Recommended actions include:

• Reviewing product lines against the MHDVs and MHDVPs specified in Annex I (and subsequent HTSUS modifications) to confirm whether the 25% or 10% duty rate applies
• Checking entry dates carefully to determine which shipments will clear before the implementation date and time, to project added costs accurately
• Preparing USMCA documentation for qualifying vehicles and parts, including the data needed to demonstrate U.S. content
• Working with a customs broker to manage entry filings and ensure compliance with new certification and reporting requirements

How Cole International can help

At Cole International, we constantly monitor changing trade regulations and offer customs and compliance consulting services to help businesses navigate these changes.

Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance processes.

If you import medium- and heavy-duty vehicles, their parts, or buses into the U.S., reach out to one of our trade professionals to determine the duties that apply to your goods and ensure compliance.