What's the Tariff on Heavy Trucks?
Heavy trucks added to Section 232 in March 2026.
Current Tariff Rate
50%
Pre-2025 Rate
25%
Rate Increase
+25pp
Price Impact
+50%
+$32,500
Real-World Price Impact
Before Tariffs
$65,000
Commercial truck
After Tariffs
$97,500
Commercial truck
That's $32,500 more per unit — a 50% price increase paid by the American buyer.
Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.
The Story Behind This Tariff
Heavy trucks joined Section 232 coverage in March 2026, stacking a 25% tariff on top of the existing 25% Chicken Tax — creating a punishing 50% combined rate. Unlike passenger vehicles, the heavy truck market (Class 6-8) serves commercial fleets — trucking companies, construction firms, and municipalities that form the backbone of American logistics. Daimler Truck (Freightliner), PACCAR (Kenworth, Peterbilt), and Volvo Trucks dominate the North American market, with significant production in both the US and Mexico. The tariff primarily hits Mexican-assembled trucks and imported European specialty vehicles. Canadian-built trucks from PACCAR's Ste-Thérèse plant also face the full rate. The timing is challenging: the trucking industry was already struggling with driver shortages and tight margins. Higher truck costs flow directly to shipping rates, affecting the price of virtually every product that moves by road.
📦 Supply Chain
Primary Origin
MX
Made in USA
60%
Import Volume
$8.9B
Alternatives
Domestic expansion (Daimler, PACCAR US plants)
📅 Tariff Timeline
1964
Chicken Tax on light trucks (heavy trucks exempt)
0% (heavy)2018
Section 232 investigation covers commercial vehicles
0%2025
Section 232 enacted on passenger vehicles; heavy trucks deferred
25% (Chicken Tax only)2026
Section 232 extended to heavy trucks
50%👥 Consumer Impact
Households Affected
130M
Annual Cost Per Household
$85
💡 Did You Know?
- •There are 3.6 million Class 8 trucks on US roads — they move 72% of all freight by value
- •A $32,500 tariff on a $65,000 truck gets passed to shipping costs, raising prices on everything that moves by road
- •Daimler's Freightliner plant in Portland, OR is the largest truck factory in North America, producing 100,000 units annually
Tariff Details
- HTS Code
- 8704.23
- Current Rate
- 50%
- Pre-2025 Rate
- 25%
- Tariff Type
- Section 232
Legal Authority
Section 232 (National Security)
Effective: Various (2018-2025)
Tariffs on imports deemed a threat to national security
The tariff on Heavy Trucks is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.
Who Actually Pays This Tariff?
Despite claims that tariffs are paid by foreign countries, the 50% tariff on Heavy Trucks is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.
- ✓ The foreign seller receives the same price as before
- ✓ The US importer pays 50% of the customs value to CBP
- ✓ The retailer marks up the higher landed cost
- ✓ You pay more at the register: $65,000 → $97,500
Related Products in Industrial
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25%
1 ton aluminum: $2,400 → $3,000
Semiconductors
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Chip batch (1000 units): $5,000 → $7,500
Copper Wire
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1000 ft copper wire: $350 → $438
Lithium-Ion Batteries
54%
EV battery pack: $8,000 → $12,320
Solar Panels
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10 kW system: $15,000 → $23,100
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