U.S. Manufacturers Of Heavy-Duty Trucks Face A Tariff Disadvantage

U.S. heavy-duty truck makers face higher input costs due to Section 232 tariffs on imported steel, aluminum, and copper derivatives.

Tariffs and USMCA rules give Mexico-built, USMCA-compliant trucks about a 3% cost advantage over U.S.-assembled models.

Volvo Trucks invested over $500 million in U.S. plants and $2 billion in a new truck platform but still pays extra costs when parts are sourced from Mexico or Canada.

Recent reports say tariffs on aluminum and steel derivatives were cut from 50% to a 15%–25% range, altering the cost dynamics for manufacturers.