US: The United States has imposed a 25 per cent tariff on medium- and heavy-duty trucks and a 10 per cent duty on buses, effective Saturday, following an investigation by President Donald Trump’s administration into the national security risks posed by such imports.

According to a White House statement, “Products subject to tariffs under this proclamation will not be subject to additional or existing sectoral tariffs on steel, aluminium, copper, automobiles and automobile parts, and lumber.”

The investigation was launched under the Trade Expansion Act of 1962, which allows the president to impose tariffs on goods considered vital to national security. The White House described the move as essential for “America’s military readiness, emergency response capabilities, and critical infrastructure supporting economic activity.”

Under the new policy, trucks that qualify for preferential treatment under the US-Mexico-Canada Agreement (USMCA) will face the 25 per cent tariff only on their non-US content. Eligible truck components will continue to enter the US duty-free until the Commerce Department finalises a mechanism to determine foreign content.

Trucks will also be exempt from separate “reciprocal” tariffs, which set different rates for trading partners.

The American Trucking Associations, representing around 37,000 companies, had earlier urged the administration to delay the move, warning that the tariffs could hurt manufacturers, dealers, and motor carriers by driving down sales.

A report by United Overseas Bank showed that more than 70 per cent of heavy-duty trucks imported into the US come from Mexico, while roughly 20 per cent originate from Canada.

Trade tensions have already begun to affect Mexico, with exports of heavy vehicles to the US dropping nearly 26 per cent year-on-year between January and August. The country’s economy also contracted by 0.3 per cent in the third quarter as it continued talks with Washington to negotiate relief from the wide-ranging tariff measures.

IANS

IANS