Class 8 Truck Prices Set to Climb Again Under New Tariffs
Details Sparse as Heavy-Duty Truck, Parts Levies Begin Oct. 1
Key Takeaways:
- Industry analysts said prior tariffs on steel and aluminum raised raw material costs by 9% to 12% and increased Class 8 truck production costs by as much as 24% in 2025.
- Truck makers and carriers warned the U.S. lacks sufficient domestic supply of key components like transmissions, axles and cooling modules, making parts tariffs especially disruptive.
- Companies including Paccar and Ford supported tariffs on fully built trucks but cautioned that higher parts tariffs could add billions in costs and hinder future investment.
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The Trump administration’s 25% tariff on imported trucks and components will inflict another round of tariff-fueled cost increases on motor carriers already struggling with stubbornly weak freight volumes and depressed rates, executives and analysts said.
“Trucks will be more expensive at a time when we can least afford it,” Werner Enterprises CEO Derek Leathers told the WEX OTR Summit in San Antonio Oct. 2. Werner ranks No. 18 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
Details on how the levies would be imposed and collected were scant as of Oct. 2, which kept truck makers understandably tight-lipped about the potential impact.
“We look forward to seeing more details on the plans and how they will be implemented,” said Volvo Group North America, parent company of Volvo Trucks North America and Mack Trucks, when queried by TT.
“We look forward to reviewing the details of the medium- and heavy-duty truck Section 232 tariff announcement made by the president as they become available,” said a Paccar spokesperson.
International Motors added, “We await the details of the executive order relating to 232 tariffs.”
(International Motors)
Trump Cites National Security in Tariff Justification
What’s clear is that President Donald Trump believes the tariffs — adopted under Section 232 of the Trade Expansion Act of 1962, which authorizes tariffs on foreign goods in occurrences where the federal government deems them appropriate to protect national security — will be a boon for domestic manufacturing.
“In order to protect our Great Heavy Truck Manufacturers from unfair outside competition, I will be imposing, as of October 1st, 2025, a 25% Tariff on all ‘Heavy (Big!) Trucks’ made in other parts of the World,” Trump wrote in a Sept. 25 post on his Truth Social platform. “Therefore, our Great Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions. We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!”
The U.S. Department of Commerce in April launched a Section 232 investigation to determine “the effects on the national security of the imports of medium-duty trucks, heavy-duty trucks, and medium- and heavy-duty truck parts.”
RELATED:ATA Opposes Federal Probe That Could Increase Truck Tariffs
Still unclear as of Oct. 2 were details on which trucks and parts are subject to the new tariffs.
Questions Remain Over USMCA and Cross-Border Manufacturing
Of particular importance to most truck manufacturers is whether and to what extent the United States-Mexico-Canada Agreement plays a role, as several truck manufacturers have factories in Canada and Mexico. Neither the White House nor Commerce responded to requests for clarification or comment.
One analyst noted that the new tariffs could serve as an offset to earlier tariffs that have affected domestic truck manufacturers. The Trump administration introduced Section 232 tariffs on aluminum and steel in March, doubled the levies in June, and imposed reciprocal tariffs on goods imported from allied or rival nations.
“Really, this [new] tariff is leveling out what was an unintended, uneven playing field,” Vertical Research Partners analyst told Daly Asset Management in a video released Oct. 1. “Originally, when the 50% aluminum and steel tariffs went through, it put the U.S. manufacturers at a bit of a disadvantage, because you had companies like [Daimler Truck North America and Traton Group] that were manufacturing in Mexico and then shipping the entire vehicle into the U.S., which was USMCA compliant.”
(Daimler Truck North America)
DTNA owns two plants in Mexico: Saltillo and Santiago Tianguistenco. Freightliner Cascadias are built in Saltillo. International builds the company’s full Class 8 lineup at the Escobedo plant.
FTR Transportation Intelligence Senior Analyst for Commercial Vehicles Dan Moyer estimated at the start of September that the cost of building a Class 8 truck or tractor had increased by as much as 24% since the start of 2025 as a result of tariffs. He estimated raw material costs were up 9% to 12%.
Truck Makers, Carriers Split on Parts vs. Vehicle Tariffs
Paccar Inc., in comments filed with Commerce in May as part of the Section 232 investigation, cautioned against new tariffs on parts manufacturers, but advocated for the tariffs on fully completed trucks built overseas.
As it related to parts, Paccar — which builds Kenworth and Peterbilt trucks — noted that the United States does not produce enough transmissions, frame rails, brake drums and hubs, axles, suspensions, cooling modules, sensors, mirrors and trim assemblies and other components to satisfy production demand. It also touted its own stateside final assembly capacity as sufficient.
(Peterbilt)
“We support President Trump’s goal of producing medium- and heavy-duty trucks in America and look forward to working with the administration to design a tariff structure for truck parts and components that will encourage suppliers to continue shifting production and materials sourcing to the U.S. where feasible while supporting truck manufacturers that build finished vehicles in America,” it wrote, noting that 98% of Kenworth and Peterbilt heavy-duty on-highway trucks were built in the U.S.
Ford Motor Co., which produces Classes 2-7 commercial trucks, echoed Paccar’s stance.
“This is a really big deal for our country and for Ford,” . “Companies like Paccar and Ford, we make all of our heavy-duty trucks in America. We have a lot of competition from overseas. And a 25% tariff will be a really big deal.”
Farley also acknowledged the difficulty of domestic parts sourcing.
“On the parts tariffs side, for the vehicles we do build in the United States, there are a lot of parts that we don’t make in the U.S.,” he said. “Those are getting tariffs at 25% to 70% and we need to make those more affordable. It’s a $2 billion headwind for Ford that really restricts our future investment.”
International Motors — which builds trucks in the U.S. and overseas — told Commerce in May, “Export and import restrictions can lead to severe disruptions in the supply chain, affecting the availability of trucks and truck parts in the U.S. This can result in freight delays, increased costs, and operational challenges for businesses reliant on shipping or receiving these products.”
(Hirschbach Motor Lines)
Hirschbach Motor Lines questioned the national security argument at the center of the Commerce investigation. Hirschbach ranks No. 58 on the for-hire TT100.
“The import of medium- and heavy-duty trucks and truck parts is not a threat to the national security interests of the United States, but imposing tariffs that drive up the cost of these vehicles will adversely affect our business and the U.S. customers and communities we serve,” it said.
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