Trump Tariffs Import Trucks And Buses, Global Industry Affected?

Illustration of Ram's pickup truck in America. (Photo: Carscoop)

JAKARTA President Donald Trump has officially imposed a new import duty on heavy imported vehicles, including class 3 to 8 trucks and buses, citing "national security". This new policy has an impact on the global automotive industry.

A rate of 25 percent for middle and heavy class trucks and import parts, as well as import duties of 10 percent for buses, as well as extending the main tariff relief for US automakers. Policies regarding tariffs on trucks and buses will start November 1, according to senior government officials.

Furthermore, the Trump administration stipulates that domestic medium and heavy vehicle manufacturers will be entitled to credit at 3.75 percent of the retail price recommended for vehicles manufactured in the United States by 2030, as compensation for the imposed import duties.

Reporting from Carscoops, Tuesday, October 21, the data shows that about 43 percent of the 4 to 8 class truck models sold in the US market come from overseas, a sharp increase compared to previous years. Major imports came from Mexico, Japan, Germany, Canada, and Finland.

The US Business Association and Industry Organization responded to this policy in a tone of concern. The American Trucking Association said that this move could boost prices just as the transportation sector was still facing a burden due to tariffs on steel.

Meanwhile, the US Chamber of Commerce had previously warned that countries such as Mexico, Japan and Germany, which have been the main suppliers, do not present a threat to national security as claimed.

The impact of this policy is expected to expand not only on domestic manufacturing in the US, but also on global supply chains. Component manufacturers outside the US supplying imported vehicles will also experience pressure. Any increase in costs will have a direct impact on vehicle prices in the global market, including those connected to the supply chain of the automotive industry in Asia.