New Tariffs on Heavy Trucks: A New Yorker’s Take

Trump’s Big Announcement

So, Trump decided he’s had enough of trucks rolling in from abroad. Late on September 25th, he hit social media to announce a fresh batch of tariffs. Heavy trucks now get slapped with a 25% tariff starting October 1st. Looks like Trump wants to cozy up to U.S. manufacturers. He also aims to wallop furniture, cabinets, and branded drugs with their own tariffs. All this, he claims, is to keep U.S. truckers and manufacturers mighty and robust for our national security.

Industry’s Mixed Feelings

Here’s where it gets interesting. Big players like Paccar, builders of Peterbilt and Kenworth trucks, and Volvo Group, seem to be cashing in on this move. Their stocks climbed with Paccar rising 5.16% and Volvo up by 4.11%. Ken Hastings from Paccar mentioned they’re awaiting the fine print but think this could level the playing field for manufacturers stateside.

On the flip side, Traton Group, which assembles many trucks in Mexico—think International Motors and Volkswagen Truck & Bus—got hit. Their shares dropped 12.65%, and like Daimler, they’re biting their nails waiting for more details.

Trade Groups Aren’t Thrilled

Industry associations are far from throwing confetti. The National Truck Equipment Association doesn’t want to say much yet, staying mum until the White House or Commerce Department explains further. Over at the American Trucking Associations, there’s a concern that these tariffs could hike costs and mess with highway safety. They’d written to Stephen Astle in May, pleading not to mess with heavy-duty trucks and parts. This could mess with jobs and shake the U.S. economy.

Existing Tariff Landscape

These new measures only thicken the plot for existing tariffs on steel, aluminum, and more. Trump’s broadening his use of national security trade powers, getting busy with Section 232.

What’s Next?

As these tariffs settle in, companies pore over logistics and costs. Meanwhile, the rest of us wait to see how this shakes out for prices on goods and stability in the job market. Could these moves boomerang back on American consumers? As they say in the city, only time will tell. Check out our exclusive industry data here.