US tariffs on heavy trucks, buses come into effect
WASHINGTON
Fresh U.S. tariffs on imports of medium- and heavy-duty trucks took effect Nov. 1, although with partial relief for vehicles entering the country under a key North America trade agreement.
The 25-percent tariff on trucks, alongside a 10 percent duty on buses, comes into place after President Donald Trump's government launched a Section 232 probe into such imports to gauge their implications on national security.
The president has tapped such investigations, under the authority of the Trade Expansion Act of 1962, to impose tariffs on various categories of goods in efforts to boost domestic manufacturing and punish countries deemed to be taking advantage of the United States.
The steel and aluminum sectors have also been hit, with 50-percent tariffs, as were autos with a 25 percent duty.
However, the latest truck tariffs will not stack on existing duties applying to steel, aluminum copper, autos and lumber, the White House said in October.
Trucks will be spared from separate "reciprocal" duties setting out rates varying by trading partner too.
The American Trucking Associations, representing some 37,000 companies, urged in May for the Trump administration to hold off truck tariffs, warning that lower sales could harm manufacturers, dealers and motor carriers.
The vast majority of U.S. truck imports come from its immediate neighbors Mexico and Canada, economists say.
