November 2025 will be remembered as the month when the cost of doing business in trucking fundamentally changed. On November 1st, the United States began levying steep new tariffs on imported trucks and truck parts—a 25% duty on medium- and heavy-duty vehicles and components, plus a 10% tariff on buses—under Section 232 of the Trade Expansion Act of 1962. The proclamation, issued by President Trump in mid-October, cites national security concerns as justification for protecting domestic truck manufacturing. For carriers, brokers, and shippers alike, these tariffs represent more than just another line item on an invoice. They signal a seismic shift in fleet acquisition costs, supply chain economics, and the competitive landscape of North American trucking. As the industry absorbs the initial shock waves, the consensus is clear: these tariffs will fundamentally alter how fleets finance, maintain, and operate their equipment for years to come.
The scope and mechanics of the new tariffs
The tariffs cover virtually the entire spectrum of commercial trucking equipment. Classes III through VIII trucks—ranging from large pickup trucks to eighteen-wheeler tractors—now face a 25% ad valorem duty when imported. The same 25% rate applies to a comprehensive list of truck parts detailed in Annex I of the proclamation, including engines, transmissions, tires, chassis components, and critical mechanical systems spanning HTSUS Chapters 40, 73, 84, 85, and 87. Buses—including school buses, transit buses, and motor coaches—are hit with a 10% tariff. The duties took effect at 12:01 a.m. EDT on November 1, 2025, and apply to all goods entered for consumption or withdrawn from warehouse for consumption on or after that date.
Importantly, these tariffs stack on top of most other existing duties and fees, creating a complex web of overlapping levies. However, the proclamation includes critical carve-outs and interactions with other tariff programs. Products subject to the new truck tariffs are not simultaneously subject to existing Section 232 tariffs on steel, aluminum, copper, or automobiles, nor are they subject to IEEPA reciprocal tariffs or the tariffs imposed on Canada, Mexico, Brazil, or India. The one exception: China’s fentanyl-related tariffs still apply. For vehicles and parts qualifying for preferential treatment under the United States-Mexico-Canada Agreement (USMCA), there’s partial relief available—but with significant caveats.
For trucks that meet USMCA rules of origin, the 25% tariff applies only to the non-U.S. content value of the vehicle, not the full price. Importers must submit documentation to the Department of Commerce detailing the U.S.-origin components to qualify for this treatment. For truck parts meeting USMCA standards (other than knock-down kits or part compilations), a special HTSUS code (9903.74.10) allows entry at 0% additional duty. These provisions acknowledge North America’s deeply integrated automotive and trucking supply chains, where roughly one-third of Class 8 truck production occurs in Mexico. But compliance is far from automatic—it requires meticulous supply chain mapping, robust documentation (including Certifications of Origin), and coordination with suppliers to prove every vehicle and part meets strict content rules.
A lifeline for domestic manufacturers: the offset program
Recognizing that even domestic assemblers rely heavily on imported components, the Trump administration created an import adjustment offset program designed to incentivize U.S. manufacturing. Manufacturers that complete final assembly of trucks or engines in the United States are eligible for an offset equal to 3.75% of the aggregate value of vehicles assembled domestically. This percentage reflects the tariff that would be owed if 25% were applied to parts comprising 15% of a vehicle’s total value—essentially a recognition that no truck is 100% domestic content. The offset can be used to reduce Section 232 tariffs owed on imported parts, providing significant relief for major OEMs with U.S. assembly operations.
The program runs from November 1, 2025, through October 31, 2030, giving manufacturers five years to leverage domestic production as a hedge against tariff costs. A parallel offset applies to engine manufacturers based on the value of engines assembled in the U.S. The administration also extended the automobile offset provisions originally established earlier in 2025, aligning the truck and auto sectors through 2030. In theory, this should level the playing field for domestic production. In practice, however, only the largest manufacturers with significant U.S. footprints can take full advantage. Mid-sized and smaller fleets that don’t assemble their own vehicles—essentially everyone except the major OEMs and a handful of specialty builders—gain little benefit from offsets. They still face the full brunt of tariff costs when purchasing trucks or sourcing replacement parts.
Additionally, the proclamation authorizes the Secretary of Commerce to reduce tariffs on certain aluminum and steel imports from Canada or Mexico from 50% down to 25%, provided those metals are supplied to U.S. truck and auto producers, meet USMCA requirements, and were smelted/cast or melted/poured in Canada or Mexico. These reductions are capped at quantities matching newly committed U.S. production capacity, as determined by the Secretary. While helpful at the margins, this relief is narrowly targeted and subject to ongoing review—hardly the kind of predictable cost structure fleets need when planning multi-year equipment purchases.
The immediate cost shock: sticker prices and operating budgets under pressure
For trucking companies, the math is brutal. Industry analysts estimate the total cost to the sector could exceed $3 billion, factoring in higher equipment prices, increased parts costs, and the cascading effects on financing and insurance. A new Class 8 tractor that previously cost $150,000 could see a $37,500 increase if it’s fully imported and doesn’t qualify for USMCA treatment—essentially adding the price of a new dry van trailer to every truck purchase. Even with USMCA relief reducing the tariff to, say, 10-15% of the vehicle’s value (by excluding U.S. content), that’s still $15,000 to $22,500 per truck—a non-trivial expense that many carriers cannot simply absorb in an already margin-constrained environment.
The timing couldn’t be worse. After enduring a prolonged freight recession throughout 2023, 2024, and most of 2025, carriers are operating on razor-thin margins. Spot rates remain depressed—hovering around $1.95 to $2.05 per mile for dry van in early 2025 and only recently stabilizing near $2.31-$2.36 per mile—while operating costs for fuel, insurance, and maintenance remain elevated. Capacity has been exiting the market steadily as financially stressed fleets close their doors, with carrier failures reaching record highs. ACT Research noted that heavy-duty truck production was cut sharply in the second half of 2025, with build rates now well below replacement levels. Tractor builds fell 32% from the first half to the second, meaning the industry is no longer adding equipment—it’s actually shrinking the active fleet.
Now, with tariffs driving up the cost of new and replacement trucks, that capacity attrition is likely to accelerate. Small and mid-sized carriers, which typically operate on older equipment and rely on competitive pricing when buying or leasing trucks, face an impossible choice: pay significantly more for new equipment (straining already tight budgets and credit lines) or run aging trucks longer (increasing maintenance costs and downtime risks). For owner-operators and small fleets operating on the margin, the tariff increase could be the final straw. As one industry observer put it, “We’re making it more expensive to be a trucker at the exact moment when being a trucker is already unprofitable for many.” The result will likely be further fleet exits, accelerating the capacity correction that’s been slowly rebalancing the market.
Ripple effects across the supply chain: parts, service, and used truck markets
The tariffs don’t just hit new truck purchases—they permeate every corner of the trucking ecosystem. Replacement parts for existing trucks are now subject to the 25% duty if imported, driving up maintenance costs across the board. Engines, transmissions, axles, tires, and electronic components—many of which are manufactured overseas or contain significant foreign content—will cost more. For fleets running older equipment (a growing cohort as new purchases become prohibitively expensive), the increased parts costs eat directly into operating margins. Maintenance budgets, already under pressure, must now stretch further to cover the same repairs.
Service providers and parts distributors face their own challenges. Inventories of imported parts purchased before November 1st are being drawn down, and replenishment orders now carry the tariff premium. Shops that specialize in rebuilding or refurbishing components may see increased business as fleets look for ways to extend equipment life without buying new, but even they face higher input costs for imported cores or sub-components. The used truck market, meanwhile, is experiencing whiplash. On one hand, higher new truck prices should theoretically boost used truck values by making older equipment more attractive relative to tariff-inflated new models. On the other hand, the used market in 2025 has been saturated due to fleet exits and equipment being parked or sold off during the downturn. Pricing remains depressed, though some stabilization has occurred. The tariffs may help firm up used truck values over time, but the effect will be gradual and uneven across model years and equipment types.
Financing and insurance markets are also adjusting. Lenders are recalculating loan-to-value ratios and reassessing risk profiles now that truck acquisition costs have jumped. Insurance premiums, which have already surged 40-50% for many carriers over the past five years, could tick higher as replacement values increase. For lease operators, the tariffs represent a double-edged sword: lessors will eventually pass through higher equipment costs via increased monthly payments, but in the short term, existing lease portfolios are locked in at pre-tariff pricing, creating a potential margin squeeze for leasing companies. All of these factors compound the financial stress on carriers and reshape the economics of fleet operation.
Strategic responses and industry adaptation
Faced with these new cost realities, carriers and OEMs are scrambling to adapt. Some strategies are already emerging:
Accelerated purchasing and inventory stockpiling: In the weeks leading up to November 1st, fleets that had the financial wherewithal rushed to place orders or take delivery of trucks and parts to beat the tariff deadline. Dealers and manufacturers saw a temporary surge in orders as buyers front-loaded equipment purchases. However, this created a short-term distortion—once the surge subsides, order books are likely to be thinner as buyers who pulled forward their purchases sit on the sidelines.
Maximizing USMCA compliance: Manufacturers and importers are working overtime to document and certify U.S. content in their vehicles and parts to qualify for preferential tariff treatment. This involves auditing supply chains, working with Tier 1 and Tier 2 suppliers to track component origins, and filing the necessary paperwork with Customs and Border Protection. For companies that can prove high U.S./North American content, the effective tariff can be cut by more than half. However, achieving and maintaining USMCA compliance is complex and time-consuming, especially for smaller importers without dedicated trade compliance teams.
Exploring offset programs: The largest domestic manufacturers—those with significant U.S. assembly operations—are positioning to take advantage of the offset program. By claiming the 3.75% offset against tariffs paid on imported parts, they can partially mitigate cost increases. Over five years, this could amount to substantial savings for high-volume producers. But for the vast majority of carriers who buy trucks rather than build them, offsets offer no relief.
Shifting sourcing and nearshoring: Some companies are reevaluating their supply chains to reduce reliance on tariff-heavy imports. This could mean sourcing more parts from domestic suppliers or from USMCA-qualifying plants in Mexico and Canada. In the longer term, the tariffs may accelerate the trend toward nearshoring manufacturing capacity to North America, though such shifts take years and require significant capital investment. For now, supply chains are relatively fixed, and tariff costs are simply passed through.
Extended equipment lifecycles: With new trucks more expensive, fleets are likely to run existing equipment longer. This drives increased demand for maintenance, rebuilds, and refurbishments—potentially creating business opportunities for the aftermarket service industry. However, older trucks come with trade-offs: they’re less fuel-efficient, may not meet the latest emissions standards, and have higher unplanned downtime. Fleets must balance the cost savings of deferring new equipment against the operational risks of aging trucks.
Price increases and rate negotiations: Ultimately, carriers cannot absorb a multi-thousand-dollar per truck cost increase indefinitely. Many are already signaling that they will need to pass through tariff-related costs to shippers via higher contract rates and spot prices. In a freight market that’s been soft for years, this is easier said than done—shippers have grown accustomed to low rates and abundant capacity. However, as capacity continues to exit and the tariffs reduce the effective truck supply (by making new trucks less affordable), pricing power may shift back toward carriers. Brokers and logistics providers will need to prepare shippers for potential rate increases tied to equipment costs, and build these factors into their rate forecasting models.
Broader implications: national security, trade policy, and market structure
The Section 232 tariffs on trucks are part of a broader Trump administration strategy to use tariff policy as an industrial planning tool. Since 2018, Section 232 has evolved from a narrow national security safeguard for steel and aluminum into a comprehensive mechanism for reshaping entire industries. The truck proclamation follows earlier Section 232 actions on autos, copper, and lumber, and is part of an “emerging 232 ecosystem” that links tariff relief to domestic production, cross-sector coordination, and progressive inclusion of derivative products. The administration argues that trucks, truck parts, and buses are essential to national security—vital for military readiness, emergency response, and critical infrastructure. Offshoring has increased reliance on foreign supply chains, exposing vulnerabilities that the tariffs aim to correct.
Critics, however, question whether a 25% tariff is the most effective way to strengthen domestic manufacturing. The trucking industry is deeply integrated across North America, with parts and vehicles crossing borders multiple times during production. Roughly one-third of North American Class 8 trucks are assembled in Mexico, and many U.S.-built trucks rely on Mexican and Canadian components. Tariffs disrupt these established supply chains and create immediate cost pressures without necessarily generating new domestic capacity in the short term. Building new factories, training workers, and ramping up production takes years—far longer than the timeline on which tariffs hit the market.
There are also concerns about unintended consequences. By making trucks more expensive, the tariffs could actually reduce fleet investment, leading to an older, less efficient national truck fleet. Older trucks are worse for the environment (higher emissions, lower fuel economy) and potentially less safe. If carriers cannot afford to replace aging equipment, the tariffs may inadvertently undermine other policy goals around sustainability and highway safety. Moreover, the tariffs are being implemented during a freight downturn when carriers are least able to absorb cost increases. Had they been phased in gradually or timed to coincide with a strong freight market, the impact might have been easier to manage. Instead, they arrive at a moment of maximum financial stress for the industry.
Trade partners are also reacting. China introduced new port fees on U.S.-built or operated vessels, raising costs for U.S. carriers trading with China. This tit-for-tat response illustrates how tariff policy can spark retaliatory measures, ultimately increasing costs across the global supply chain. Mexico and Canada, despite being exempt from many aspects of the tariff under USMCA, are watching closely. Any future changes to USMCA or disputes over rules of origin could further complicate the picture. For shippers engaged in cross-border trade, these dynamics add layers of uncertainty and risk.
What Luna Logistics and our clients should be doing now
The tariff landscape is unlikely to reverse anytime soon. Carriers, brokers, and shippers must adjust to this new normal and plan accordingly. Here are practical steps Luna Logistics recommends:
For carriers and fleet operators:
- Conduct a cost-benefit analysis on new equipment purchases: Calculate the true cost of new trucks under the tariff regime, factoring in USMCA eligibility, potential offsets, and financing costs. Compare this to the cost of maintaining and extending the life of existing equipment. Make data-driven decisions rather than relying on pre-tariff assumptions.
- Explore USMCA qualification: Work with your OEM or dealer to understand which trucks and parts qualify for preferential treatment. Request documentation on U.S./North American content and ensure you’re capturing all available tariff relief.
- Lock in parts inventory where possible: If your budget allows, consider stocking up on critical replacement parts before prices fully adjust to reflect the tariffs. This can provide a buffer against near-term cost increases.
- Revisit rate structures and customer contracts: Be transparent with shippers about the tariff impact on your operating costs. When negotiating contracts for 2026 and beyond, build in language that allows for adjustments if equipment costs continue to rise. Spot rate bids should reflect the higher capital costs you’re facing.
- Invest in maintenance and fleet management: If you’re running equipment longer, ensure you have the maintenance infrastructure and budgets to keep trucks safe and reliable. Preventative maintenance becomes even more critical when truck replacement is delayed.
For shippers:
- Prepare for rate increases: Tariff-driven cost pressures on carriers will eventually translate into higher freight rates. Start planning for this in your 2026 transportation budgets. Don’t assume the low rates of 2024-25 will persist indefinitely.
- Diversify your carrier base: Ensure you have relationships with multiple carriers of different sizes and financial profiles. Some fleets will manage tariff impacts better than others. A diversified carrier network reduces your risk if a key partner struggles with equipment costs.
- Engage early in RFP and contract negotiations: Work with your broker or logistics provider to incorporate tariff considerations into your rate negotiations. Understand how tariffs affect each carrier’s cost structure and what that means for pricing.
- Monitor capacity closely: The tariffs, combined with ongoing carrier exits, are likely to tighten available truck capacity over the next 12-24 months. Stay ahead of capacity crunches by booking freight early, maintaining flexibility in routing, and considering multi-modal options (rail, intermodal) where feasible.
For freight brokers and 3PLs:
- Educate your shipper clients: Many shippers may not fully understand the tariff impact on trucking costs. Brokers should proactively explain how the November 1st tariffs affect carrier economics and why rate increases are coming. Transparency builds trust and positions you as a strategic advisor, not just a transactional vendor.
- Adjust rate forecasting models: Historical rate data won’t fully capture the tariff-driven cost changes. Update your forecasting tools to account for the equipment cost premium carriers now face. This will improve quote accuracy and help shippers budget appropriately.
- Strengthen carrier relationships: In a tightening market, having strong partnerships with reliable carriers is invaluable. Brokers who treat carriers fairly, pay promptly, and communicate transparently will have better access to capacity when the market heats up.
- Track regulatory and policy developments: The tariff landscape is still evolving. Stay informed about potential changes to USMCA, new Section 232 investigations (semiconductors, aircraft, and other sectors are reportedly under review), and any legal challenges to the truck tariffs. Being ahead of policy changes allows you to advise clients proactively.
Conclusion: a new cost structure for a new era
The Section 232 tariffs on trucks and truck parts represent a fundamental reset in the economics of North American trucking. November 2025 marks the beginning of a new era where equipment costs are structurally higher, supply chains are more complex, and fleet investment decisions carry greater financial risk. For carriers already battered by a three-year freight recession, the tariffs add another layer of difficulty. For shippers, they signal the end of the rock-bottom rates and abundant capacity that defined much of 2024 and early 2025. And for brokers like Luna Logistics, they underscore the importance of staying informed, advising clients strategically, and navigating an increasingly volatile market with expertise and agility.
While the long-term goal of bolstering domestic truck manufacturing may be laudable, the short-term reality is one of cost inflation, supply chain disruption, and financial strain. The industry will adapt—it always does—but the adjustment period will be bumpy. Fleets that plan carefully, leverage available tariff relief, and maintain financial discipline will emerge stronger. Those that don’t may find themselves unable to compete. For shippers and brokers, the key is preparation: understanding the cost drivers, building in flexibility, and maintaining strong partnerships across the supply chain.
As we move deeper into the fourth quarter and into 2026, the full effects of these tariffs will become clearer. Equipment prices will settle at new, higher levels. Capacity will continue to tighten as fewer trucks are added to the fleet. And the freight market, which has been waiting for a rebound for years, may finally see the supply-demand balance shift decisively in favor of carriers. The tariffs won’t be the sole driver of that shift, but they are a significant accelerant. Luna Logistics is committed to helping our clients navigate these changes, providing the insights, relationships, and strategic guidance needed to thrive in this new landscape. The road ahead is uncertain, but with the right preparation and partnerships, there are still routes to success.