U.S. Offers Tariff Relief for Trucks Imported from Mexico and Canada

WASHINGTON — Oct 18 (FT) — The U.S. will grant tariff relief for trucks and parts imported from Mexico and Canada, easing the impact of upcoming 25% levies set to take effect on November 1. The decision aims to soften the blow to American automakers as part of President Donald Trump’s renewed trade measures targeting foreign-built vehicles.

According to senior officials, trucks and components that meet the rules of origin under the United States–Mexico–Canada Agreement (USMCA) will face duties only on their non-U.S. content. Vehicle parts will remain tariff-free until the Commerce Department finalizes a system to calculate non-U.S. value portions.

The administration also announced an extension of its tariff rebate scheme, which allows automakers producing in the U.S. to reclaim 3.75% of a vehicle’s retail value. Initially launched earlier this year, the rebate will now run through 2030 and include truck manufacturers as well.

An official said the move aims to make U.S. production “as cost competitive as possible.” The administration also introduced a 10% tariff on buses and confirmed plans to create a similar relief program for engine manufacturers.

Trump’s broader trade policies have caused unease throughout the North American automotive supply chain, where companies like GM, Ford, and Stellantis depend on cross-border production between the U.S., Mexico, and Canada. Automakers continue to lobby Washington to mitigate the disruption caused by these new tariffs.