Trump approves expanding credits for US auto production

18/10/2025 12:31

U.S. President Donald Trump on Friday signed orders expanding credits for U.S. auto and engine production and setting new 25% tariffs on imported medium- and heavy-duty trucks and parts starting November 1.



The tariffs, which the orders say are being made on national security grounds, are aimed at shifting more auto production to the United States but could be a significant blow to Mexico, which is the largest exporter of medium- and heavy-duty trucks to the United States.



Trump is also setting a 10% tariff on imported buses.



Trump's order makes automakers eligible for a credit equal to 3.75% of the suggested retail price for U.S. assembled vehicles through 2030 to offset import tariffs on parts.



He is also extending the 3.75% credit for U.S. engine production and for U.S. medium- and heavy-duty truck production.



The new tariffs cover all Class 3 through Class 8 trucks, including large pick-up trucks, moving trucks, cargo trucks, dump trucks, and tractors for 18-wheelers.

Trump last month said the tariffs were to protect manufacturers from "unfair outside competition" and the move would benefit companies such as Paccar-owned Peterbilt and Kenworth and Daimler Truck-owned Freightliner.