Trump drops another tariff bomb, now knows which sector will gain power, the rule will be effective from November 1st

US President Donald Trump on Friday ordered a new 25% tariff on imported medium- and heavy-duty trucks and their parts, effective November 1. A 10% tariff will also be charged on imported buses. According to officials, these tariffs are imposed on national security grounds and are aimed at shifting more car production to the US. However, it could be a big blow to Mexico, which is the largest exporter of medium and heavy trucks to the US. What did Trump order? Under Trump’s order, U.S. automakers could receive a credit of 3.75% of the proposed retail price for vehicles assembled in the U.S. through 2030. This credit would help offset the cost of tariffs on imported parts. Similarly, a credit of 3.75% was granted to US engine manufacturing and US medium and heavy truck production. What is included in the new rates? The new rates apply to all trucks from category 3 to category 8. These include large vans, moving trucks, cargo trucks, dump trucks and 18-wheel tractors. Trump said this step was taken to protect American manufacturers from unfair foreign competition. The decision will benefit companies such as Packer-owned Peterbilt and Kenworth-Daimler Trucks-owned Freightliner. The US Chamber of Commerce appealed to Trump. The American Chamber of Commerce earlier also called on Trump not to introduce new tariffs on trucks. He said the top five import sources – Mexico, Canada, Japan, Germany and Finland – are US allies or close partners and pose no threat to US national security. The order also provides financial relief to GM, Ford, Toyota, Stellantis, Honda, Tesla and other automakers from tariffs previously imposed on imported auto parts. The Commerce Department said in June that it plans to provide a 3.75% rebate on the value of eligible US-assembled vehicles through April 2026 to reduce tariffs on imported auto parts. After that, it will become 2.5% in the second year. What did Republican Senator Bernie Moreno say? Republican Senator Bernie Moreno said the revised credit extends it for five years, keeps it at 3.75% year-round, and applies it to more parts. This makes it more valuable to automakers and gives companies even more incentive to move their production to the US.