U.S. President Donald Trump has extended tariff exemptions for vehicles produced in the United States using imported components until 2030, while unveiling new import duties on trucks and buses entering the American market.
Under the updated policy, manufacturers assembling vehicles domestically can continue to reclaim up to 3.75% of the retail price of their cars, a measure originally due to expire in 2027. The exemption applies to all vehicles built in the U.S., including electric models, with the level of relief determined by the share of domestically sourced components. Vehicles comprising at least 85% U.S. or USMCA-origin parts will be exempt from import tariffs, while those with 50% domestic content remain partially subject to duties.
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The White House said the move builds on tariff relief introduced earlier this year to support automakers struggling to adapt their supply chains to higher import costs. Imported components for vehicles assembled in the U.S. remain subject to a 25% tariff, but refunds on final products aim to offset part of this burden.
Alongside the extension, the administration announced new import tariffs for medium- and heavy-duty trucks, as well as for buses. From Nov. 1, 2025, trucks in Classes 3 to 8 — vehicles weighing over 10,000 pounds (4,536 kilograms) — and their key components such as engines, transmissions, and chassis will be subject to a 25% tariff. For buses, including school and city models, a 10% duty will apply starting the same date.
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“The tariff on medium- and heavy-duty truck parts will apply to key parts, including engines, transmissions, tires, and chassis,” the White House said in a statement. The administration justified the new measures on national security grounds, saying they were designed to strengthen domestic manufacturing and reduce reliance on foreign suppliers.
In September, Trump said the tariffs were intended to protect major U.S. manufacturers such as Paccar, Peterbilt, Kenworth, and Daimler Truck’s Freightliner division from “unfair outside competition.”
According to Reuters, the new duties are expected to have the greatest impact on Mexico, currently the largest exporter of medium- and heavy-duty trucks to the United States. Other affected exporters include Canada, Japan, Germany, and Finland — all key trading partners of the U.S.
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The U.S. Chamber of Commerce has criticized the move, arguing that the new tariffs could strain relations with allies and raise costs for domestic industries. “These countries are allies or close partners of the United States posing no threat to U.S. national security,” the Chamber said in a statement.
The measures reflect the administration’s broader effort to encourage local production and secure the automotive supply chain, extending incentives for domestic assembly while tightening import restrictions on foreign-built commercial vehicles.