The U.S. Commerce Department announced on Wednesday that it is launching an investigation into the potential national security impacts of imports of medium-duty and heavy-duty trucks, as well as related parts, into the United States.
This investigation, under “Section 232,” could lead to new tariffs being imposed on various types of work trucks, buses, vans, and other larger vehicles.
The potential tariffs could heavily affect Mexico, as the country is the largest exporter of medium- and heavy-duty trucks to the U.S.
A recent study released in January revealed that imports of these larger vehicles from Mexico have tripled since 2019. Canada and Japan are also significant exporters of large trucks to the U.S.
The Commerce Department is requesting public comments by mid-May to understand how much of the U.S. demand for trucks and truck parts can be met by domestic production.
The department is also interested in understanding the concentration of U.S. imports of trucks and truck parts from a small group of suppliers. Additionally, the Commerce Department is seeking input on the effects of “foreign unfair trade practices” and “state-sponsored overproduction” on U.S. prices.
Earlier this month, U.S. President Donald Trump imposed a 25% tariff on light-duty vehicles and announced plans to apply a 25% tariff on imported auto parts, with an effective date set for May 3. However, the auto industry has urged him to reconsider the tariffs on auto parts.
If higher tariffs on commercial vehicles are implemented, it could drive up transportation costs at a time when Trump has vowed to reduce inflation, particularly for consumer goods like groceries.
The potential tariffs could also have an impact on companies like Chrysler-parent Stellantis, which manufactures heavy-duty Ram trucks and commercial vans in Mexico.
In addition, Sweden’s Volvo Group is set to build a $700-million heavy-truck factory in Monterrey, Mexico, with operations expected to start in 2026.
Mexico is home to 14 manufacturers and assemblers of buses, trucks, and tractor trucks, along with two manufacturers of engines, according to the U.S. International Trade Administration. The country is also the leading global exporter of tractor trucks, 95% of which are shipped to the United States.
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