Trump Imposes 25% Tariff On Heavy Truck Imports To Protect US Makers — Paccar Stock Jumps After-Hours
The White House has not yet detailed how the tariffs will be rolled out, even as they overlap with a broader national security review of truck imports.
U.S. President Donald Trump said in a late-night Truth Social post on Thursday that the country will impose a 25% tariff on all heavy truck imports starting Oct. 1, a move he said is meant to protect domestic makers such as Peterbilt, Kenworth, Freightliner and Mack Trucks from “unfair outside competition.”
“We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes,” Trump wrote.
Shares of Paccar, parent to Kenworth and Peterbilt, gained more than 5% in after-hours trading following the news. Other competitors in the heavy truck space include Daimler Truck, Mercedes-Benz, Volkswagen and Volvo. While Freightliner is owned by Mercedes-Benz, Mack Trucks is owned by Volvo.
The White House and Commerce Department have yet to spell out how the new tariffs will be rolled out, even though Trump’s deadline is less than a week away. The timing overlaps with an ongoing Section 232 investigation into imports of medium- and heavy-duty trucks, a national security review that could reshape the cost structure of the $50 billion U.S. heavy truck industry, according to a Reuters report.
American truck makers are already under pressure from 50% tariffs on imported steel, aluminum and copper derivatives, along with extra costs for parts that don’t qualify under the U.S.-Mexico-Canada Agreement. Competitors like Daimler and Volkswagen’s Traton unit have managed to avoid many of those costs by producing in Mexico, where qualifying trucks can enter the U.S. duty-free.
Volvo and its Mack unit, which builds trucks in Virginia and Pennsylvania, say U.S. production is more expensive than in Mexico, where parts and materials are cheaper. Paccar recently said that tariffs added $75 million to costs in the third quarter. ACT Research estimates tariffs on imported components add 2% to 4% to the cost of every truck built in the U.S.
The U.S. heavy truck market is valued at approximately $51.6 billion this year and is projected to reach $71.8 billion by 2030, according to Mordor Intelligence. Still, analysts expect production to drop 11% in 2026 as weaker freight demand and rising costs squeeze trucking companies.
Trump’s decision to impose a 25% tariff on imported trucks is the latest move in a broader trade push that has already hit pharmaceuticals, medical devices, furniture and industrial goods.
On Stocktwits, retail sentiment for Paccar was ‘bullish’ amid ‘normal’ message volume.
Paccar’s stock has declined 7.2% so far in 2025.
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