President Donald J. Trump signed a Proclamation invoking Section 232 of the Trade Expansion Act of 1962 (Act) to impose tariffs on imports of medium- and heavy-duty vehicles and parts, and buses, "to bolster American industry and protect national security". A 10% tariff will be levied on all imported buses, including school buses, transit buses, and motorcoaches. A 25% duty will be applied to all imported medium- and heavy-duty trucks and the parts used to manufacture them.
With this new tariff scheme US President Donald J. Trump says he "addresses the Threat to National Security from Imports of Medium and Heavy-Duty Vehicles, Parts, and Buses". For the bus and coach sector, according to ABC Companies, importer of the VDL Van Hool coaches, this measure represents a long-awaited distinction for the motorcoach sector. "By separating motorcoaches from the broader Section 232 classification for heavy- and medium-duty trucks, it provides greater clarity and stability for operators, manufacturers, and suppliers. This is a significant milestone for our entire industry,” said Jay Oakman, COO of ABC Companies. “It reflects advocacy and collaboration between manufacturers, associations, and policymakers to ensure that the motorcoach sector is properly recognized within U.S. trade policy.” The 25% tariff on imports of medium- and heavy-duty trucks and truck parts includes all medium- and heavy-duty trucks include Class 3 to Class 8 vehicles, like large pick-up trucks, moving trucks, cargo trucks, dump trucks, and tractors for eighteen-wheelers. An exception is made for USMCA-compliant (the United States-Mexico-Canada Agreement) medium- and heavy-duty truck parts, they will not be subject to
tariffs imposed in the Proclamation until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to the non-U.S. content of the parts. The Trump-administration stated that the tariffs on imported trucks are a direct response to foreign competition, designed to shield U.S. vehicle manufacturers. Its goal is to "strengthening U.S. truck manufacturing for the long haul". In the "Fact Sheet" published by the Whitehouse it is said that: "President Trump is fortifying America’s ability to manufacture medium- and heavy-duty trucks and essential parts, which is vital for America’s military readiness, emergency response capabilities, and critical infrastructure for economic activity. Trucks and buses of all kinds are indispensable to military readiness, military troop movements, disaster response, and the continuity of American critical infrastructure and economic stability, moving over 70% of the Nation’s freight, including essential goods like food, fuel, and medical supplies." According to official statements, by making imported vehicles and parts more expensive, the policy incentivizes companies to produce and source materials within the United States and support American labor with well-paying jobs.