On October 17, 2025, the President issued a proclamation to adjust the importation of medium- and heavy-duty vehicles (MHDVs), parts, and buses into the United States due to national security concerns. A report from the Secretary of Commerce indicated that increasing import levels of these vehicles could compromise U.S. national security by undermining the domestic manufacturing base that is critical for military and emergency operations. To address these vulnerabilities, the proclamation includes a 25% tariff on MHDVs and key vehicle parts, and a 10% tariff on buses, aiming to stabilize the domestic market share of MHDVs at approximately 80%.
The proclamation underscores the vital role that MHDVs and their components play in ensuring national security, particularly in the transportation of military personnel and equipment. With a considerable proportion of these vehicles now imported, the U.S. faces a risk of reliance on foreign suppliers, which could disrupt defense capabilities and critical infrastructure during emergencies. The administration intends to develop a process for implementing these tariffs and monitoring imports to ensure that national security goals are achieved.
In addition to the tariffs, the proclamation outlines an import adjustment offset program for U.S. manufacturers to help alleviate the impact of these duties on domestically assembled vehicles. These adjustments are designed to encourage investment in domestic production, enhance supply chain resilience, and ultimately bolster the U.S. economy. The administration stresses that these measures are necessary to maintain military readiness and safeguard national security interests.
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