Adjusting Imports Of Medium- And Heavy-Duty Vehicles, Medium- And Heavy-Duty Vehicle Parts, And Buses Into The United States

10/17/2025

Proclamations

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Action Summary

Investigation & Findings: The Secretary of Commerce reported that imports of medium- and heavy-duty vehicles (MHDVs), certain vehicle parts (MHDVPs), and buses threaten U.S. national security by impairing military readiness, emergency response, and critical infrastructure.
National Security Importance: MHDVs and MHDVPs are crucial for military logistics, ground mobility, and the transportation of essential goods (e.g., food, fuel, medical supplies), while buses support troop movement, disaster response, and critical infrastructure sectors.
Import Penetration & Supply Chain Vulnerabilities: There is significant and growing import penetration—43 percent for Class 4-8 MHDVs and 50 percent for Class 8—and a dependency on foreign suppliers for key components, exposing national security vulnerabilities.
Tariff Implementation:
- Imposes a 25% ad valorem duty on MHDVs and key MHDVPs and a 10% duty on buses, effective November 1, 2025.
- Establishes mechanisms to adjust tariffs based on declared U.S. content and to prevent circumvention through inaccurate declarations.
Import Adjustment Offsets:
- Provides for offset credits for U.S.-assembled MHDVs and MHDV engines, calculated as 3.75% of the aggregate value, applicable from 2025 through 2030.
- Excludes knock-down kits or equivalent parts compilations from offset eligibility.
Harmonization with Previous Proclamations: Conforms aspects of the tariff system with earlier actions (e.g., Proclamations 10908, 10925, 9704, 9705, and 9888) to more effectively address national security threats.
Additional Measures & Monitoring:
- Directs the establishment of processes for including additional MHDVPs under the tariffs if necessary to mitigate national security risks.
- Requires ongoing monitoring, review, and adjustments by the Secretary and coordination with CBP and other agencies.
Legal & Regulatory Authorities: Actions are grounded in Section 232 of the Trade Expansion Act, Section 604 of the Trade Act of 1974, the International Emergency Economic Powers Act, and other statutory provisions, with delegated regulatory authority to implement and enforce the tariffs and related programs.

Risks & Considerations

The imposition of tariffs on medium- and heavy-duty vehicles (MHDVs), parts, and buses could lead to increased costs for these products, potentially affecting transportation and logistics operations at Vanderbilt University. This could impact the university’s ability to efficiently manage supply chains and transportation of goods and services.
There is a risk that the increased tariffs could lead to higher operational costs for departments that rely on transportation services, such as facilities management and campus services. This may necessitate budget adjustments or reallocation of resources.
The focus on strengthening domestic production and supply chains may present opportunities for Vanderbilt’s research and development programs, particularly in engineering and manufacturing, to engage in partnerships or projects aimed at innovation in vehicle and parts manufacturing.
Vanderbilt University may need to consider the potential impact on its international collaborations and partnerships, especially if they involve entities in the automotive or transportation sectors affected by these tariffs.

Impacted Programs

Vanderbilt’s School of Engineering could see increased demand for research and expertise in vehicle manufacturing and supply chain resilience, presenting opportunities for collaboration with industry and government agencies.
The Office of Business Services might need to reassess contracts and agreements with transportation and logistics providers to account for potential cost increases due to tariffs.
Vanderbilt’s International Programs may need to evaluate the impact of these tariffs on international partnerships and collaborations, particularly those involving countries affected by the import adjustments.

Financial Impact

The tariffs could lead to increased costs for transportation and logistics services, potentially affecting the university’s operational budget and necessitating financial adjustments.
There may be opportunities for Vanderbilt to secure funding for research and development in vehicle manufacturing and supply chain innovation, particularly through collaborations with federal agencies focused on strengthening domestic production.
The university might experience changes in its procurement strategies, particularly if domestic suppliers become more competitive due to the tariffs on imported goods.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential financial adjustments for the university.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor the implementation of the new tariff system on medium- and heavy-duty vehicles (MHDVs) and parts, as it may impact research funding and partnerships with industries affected by these tariffs. Understanding the economic implications can help the university align its strategic initiatives with national priorities.
Vanderbilt’s School of Engineering could explore research opportunities in developing innovative technologies for domestic MHDV production. By focusing on enhancing supply chain resilience and manufacturing efficiency, the school can contribute to national security objectives and potentially secure federal research grants.
The Vanderbilt Center for Transportation and Operational Resilience should assess the potential impacts of the tariffs on transportation logistics and infrastructure. This analysis can provide insights into how changes in import dynamics might affect national and regional transportation networks, offering opportunities for policy recommendations and research collaborations.
Vanderbilt’s Business School should consider case studies and research on the economic effects of the tariffs on the automotive and transportation sectors. This can enhance the curriculum and provide students with real-world insights into trade policy and its implications for business strategy.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Research Centers to engage in studies related to the economic and security impacts of the tariffs. By leveraging expertise in economics, public policy, and engineering, the university can contribute to national discussions and influence policy development.
Vanderbilt can capitalize on the increased focus on domestic production by developing partnerships with industries involved in MHDV manufacturing. This could include joint research initiatives, internships, and collaborative projects that enhance the university’s role in supporting national security and economic stability.
The emphasis on strengthening supply chains offers an opportunity for Vanderbilt’s Supply Chain Management Program to engage in research and education initiatives. By providing evidence-based recommendations, the program can influence how industries adapt to the new trade environment and support the development of resilient supply chains.

Relevance Score: 4 (The order presents the potential for major process changes required for Vanderbilt’s programs due to impacts on research funding and industry partnerships.)

Average Relevance Score: 3.8

Timeline for Implementation

Tariff Implementation: The tariffs on MHDVs, MHDVPs, and buses apply to goods entered for consumption or withdrawn from warehouse on or after 12:01 a.m. EDT, November 1, 2025.
Import Adjustment Offset for MHDVs: U.S.-assembled MHDV manufacturers may apply for an offset from November 1, 2025, through October 31, 2030.
Import Adjustment Offset for Automobiles: U.S.-assembled automobile manufacturers may apply for an offset from April 5, 2025, through April 30, 2030.

Analysis: Although multiple timelines are specified, the shortest actionable compliance window is the tariff implementation deadline on November 1, 2025, which is less than 30 days from the signed date.

Relevance Score: 5

Impacted Government Organizations

Department of Commerce: The proclamation is based on the investigation conducted by the Secretary of Commerce, which determined that imports of medium- and heavy-duty vehicles, parts, and buses pose a national security threat, prompting tariff adjustments.
U.S. Customs and Border Protection (CBP): CBP is tasked with administering and enforcing the tariffs, including verifying import declarations and ensuring compliance with designation requirements.
Department of Homeland Security: The Secretary of Homeland Security is directed to take appropriate actions to implement and effectuate the proclamation, working alongside other agencies.
United States International Trade Commission (USITC): The USITC is consulted regarding modifications to the Harmonized Tariff Schedule, ensuring the tariff system aligns with the national security objectives.

Relevance Score: 2 (Between 3 and 5 federal agencies are explicitly impacted.)

Responsible Officials

Secretary of Commerce – Tasked with reporting on import threats, establishing import adjustment offset programs, and implementing tariff adjustments.
Commissioner of U.S. Customs and Border Protection (CBP) – Responsible for administering and enforcing the tariffs, including verifying import declarations and applying adjustments as needed.
Secretary of Homeland Security – Directed to work alongside the Secretary of Commerce to implement necessary regulatory actions and ensure overall enforcement.
Chair of the U.S. International Trade Commission – Consulted by the Secretary to determine modifications to the Harmonized Tariff Schedule of the United States.

Relevance Score: 5 (Directives affect Cabinet-level officials and agency heads, who are responsible for executing high-level national security and trade policies.)