U.S. Commerce Department Probes Tariff Impact on Truck Imports

The U.S. Commerce Department is investigating national security implications of importing medium and heavy-duty trucks into the U.S., possibly leading to tariffs. The focus includes reliance on imports from countries like Mexico, Canada, and Japan and the impact of tariffs on domestic production and transportation costs.

The U.S. Commerce Department announced a new investigation examining the national security implications of imports of medium-duty and heavy-duty trucks and related parts. This 'Section 232' probe could potentially lead to tariffs on work trucks, buses, and vans.

Mexico, the largest exporter of these vehicles to the U.S., could face economic challenges if tariffs are imposed, as its export levels have tripled since 2019. Canada and Japan are also major exporters. The study seeks public opinion on whether U.S. production can sufficiently meet demand and the effects of foreign trade practices on prices.

Rising tariffs on commercial vehicles may influence transportation costs amidst President Trump's inflation-reduction promises. Chrysler-parent Stellantis and Sweden's Volvo Group could also be affected as they expand truck production in Mexico. Mexico maintains a significant export operation, particularly in tractor trucks.

(With inputs from agencies.)