U.S. President Donald Trump on Friday signed executive orders to boost domestic auto and engine production and to impose new import duties on large trucks and buses.
The benefit to U.S. manufacturers is immediate: automakers building vehicles in America will be eligible for a credit equal to 3.75 % of the suggested retail price of eligible U.S.-assembled vehicles, extended through 2030.
At the same time, the administration is imposing a 25% tariff on all imported medium- and heavy-duty trucks (Class 3 through Class 8) and their parts, effective Nov. 1. In addition, a 10 % tariff will apply to imported buses.
The orders claim national security grounds as justification. They are designed to “shift more auto production to the United States,” the White House said.
Senator Bernie Moreno, a Republican and auto-industry ally, said the expanded credit “makes it more valuable for automakers and could give companies more incentive to shift production.”
For U.S. industrial workers, the hope is that more assembly, engine and truck production locate on-shore, helping job stability and domestic manufacturing supply chains.
Industry voices greeted the move with mixed reaction. The U.S. Chamber of Commerce urged the president not to proceed with new truck duties, warning that major import sources, Mexico, Canada, Japan, Germany and Finland, are allies and pose no national-security threat.
On the other hand, Ford Motor Company CEO Jim Farley said the order “will help make auto parts affordable for U.S. production and the new import tariffs on larger trucks would help level the playing field with imports.”
The Straits Times
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However, the move could raise costs in other sectors. For example, Mexico is the largest exporter of medium- and heavy-duty trucks to the U.S., and some of those vehicles contain roughly 50 % U.S. content. The tariff may spark retaliation or supply-chain shifts.
Automakers have already faced tariff-related cost burdens: earlier this year, General Motors Company estimated up to US$5 billion in gross tariff-related costs in 2025, and Ford cited a US$3 billion hit.
In short: U.S. vehicle makers get a longer-term credit incentive tied to production in the U.S., while imported large trucks now face heavy duties, a strategy that may reshape supply chains, boost domestic production, but also stir trade tensions.
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