Mexico May Seek Exemption From New Truck Duties
Mexican media reported that President Claudia Sheinbaum said in her daily press conference that Mexico will try to get an exemption from the announced 25% tariff on medium- and heavy-duty trucks.
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Currently, trucks assembled in Mexico can enter duty-free if they are at least 64% North American. The Section 232 tariff actions thus far have not carved out USMCA goods, however.
Sheinbaum said Oct. 7 she would call President Donald Trump to discuss not imposing the duty, "if it's necessary."
According to a public comment by the American Trucking Association on the Section 232 investigation on heavy trucks, 40% of Class 8 trucks are assembled in Mexico, and 60% are made in the U.S.
However, that figure doesn't cover the larger pickup trucks that are also set to be covered by the 25% tariff on Nov. 1.
Canada also commented on the investigation, noting that its companies bought $7.2 billion in medium- and heavy-duty trucks, far more than the $2.9 billion it exported in these categories to the U.S.
The American Trucking Association warned in May that increasing the price of heavy trucks -- already averaging $170,000 -- would mean fewer sales, not more jobs in domestic truck and truck engine plants. Such a slow-down already has occurred, with the trade war affecting trucking volumes.