Fact Sheet: President Donald J. Trump Addresses the Threat to National Security from Imports of Medium and Heavy-Duty Vehicles, Parts, and Buses

10/17/2025

Fact Sheets

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Action Summary

National Security & Trade Protection: Invokes Section 232 of the Trade Expansion Act of 1962 to impose tariffs on medium- and heavy-duty vehicles, parts, and buses to protect American industry and national security.
Tariff Details:
- 25% tariff on imports of medium- and heavy-duty trucks and key truck parts (engines, transmissions, tires, chassis).
- 10% tariff on imports of buses, including school buses, transit buses, and motor coaches.
- Different tariff applications for vehicles under USMCA preferential treatment (tariff on only the non-U.S. content).
Domestic Production Incentives:
- Introduces an offset program offering a 3.75% tariff reduction based on the value of U.S.-assembled medium- and heavy-duty trucks (2025–2030).
- Establishes a similar offset for domestic truck engine manufacturers.
- Extends the automobile tariff adjustment program, allowing offsets on parts based on the MSRP of U.S.-assembled automobiles.
Supply Chain and Critical Infrastructure: Emphasizes the importance of domestic manufacturing for military readiness, disaster response, and economic stability, noting that over 70% of U.S. freight relies on trucks and that current imports make up approximately 43% of trucks sold in America.
Harmonization of Tariff Programs: Adjusts the Section 232 automobile tariff program to align with the newly established medium- and heavy-duty truck tariffs.
Exemptions and Trade Policy: Specifies that products subject to these tariffs will not incur additional or sectoral tariffs on steel, aluminum, copper, automobiles, or lumber, nor be affected by reciprocal tariffs or tariffs imposed on select countries (Canada, Mexico, Brazil, or India).
Broader Context & Ongoing Initiatives:
- Builds on previous actions under the America First Trade Policy.
- Complements ongoing Department of Commerce investigations into other critical sectors such as semiconductors, commercial aircraft, and robotics.

Risks & Considerations

The imposition of tariffs on medium- and heavy-duty vehicles and parts could lead to increased costs for industries reliant on these imports, potentially affecting research and operational budgets at Vanderbilt University if these vehicles are used in university operations or research projects.
Vanderbilt’s research programs that involve transportation, logistics, or supply chain management may need to adjust their focus or methodologies to account for changes in the availability and cost of imported vehicles and parts.
The tariffs could lead to a shift in the domestic manufacturing landscape, potentially creating new opportunities for research partnerships with U.S.-based manufacturers or for studies on the economic impacts of such trade policies.
There is a risk that the increased cost of imported vehicles and parts could indirectly affect the university’s financial planning, particularly if these costs are passed down through service providers or contractors.

Impacted Programs

Vanderbilt’s School of Engineering may see increased demand for expertise in domestic manufacturing processes and supply chain resilience, presenting opportunities for new research initiatives and collaborations.
The Owen Graduate School of Management could explore case studies and research projects related to the economic impacts of trade policies and tariffs, providing valuable insights for students and faculty.
Vanderbilt’s Transportation and Logistics Programs might need to adapt their curricula to address the changing landscape of vehicle manufacturing and supply chain management in the U.S.

Financial Impact

The tariffs could lead to increased operational costs for any university departments or projects that rely on medium- and heavy-duty vehicles, potentially necessitating budget adjustments or reallocations.
There may be opportunities for Vanderbilt to secure funding for research into the effects of trade policies on domestic manufacturing and economic security, particularly through partnerships with federal agencies or industry stakeholders.
Changes in the manufacturing landscape could lead to new funding opportunities for research and development in areas such as supply chain resilience, manufacturing innovation, and economic policy analysis.

Relevance Score: 3 (The order presents moderate risks involving compliance or economic impacts that may affect university operations and research opportunities.)

Key Actions

Vanderbilt’s School of Engineering should explore research opportunities in the development of innovative technologies for medium- and heavy-duty trucks and parts. By aligning with the national focus on strengthening domestic manufacturing, the school can secure funding and partnerships to advance technological innovation in this sector.
The Office of Federal Relations should monitor developments in trade policies and tariffs to assess their impact on Vanderbilt’s research collaborations and partnerships with international institutions. Understanding these changes will be crucial for maintaining and expanding global research networks.
Vanderbilt’s Center for Transportation and Operational Resilience can leverage the increased focus on domestic truck manufacturing to conduct research on supply chain resilience and logistics optimization. This research can provide valuable insights into improving national infrastructure and economic stability.
The Department of Political Science should analyze the broader implications of trade policies on national security and economic sovereignty. By conducting policy analysis and engaging with policymakers, the department can contribute to the national conversation on trade and industrial policy.
Vanderbilt’s Business School should evaluate the potential impacts of tariffs on the automotive and transportation industries. By understanding these market dynamics, the school can offer strategic insights and training for future business leaders navigating these changes.

Opportunities

The Proclamation presents an opportunity for Vanderbilt’s School of Engineering to collaborate with domestic truck manufacturers on research and development projects. By contributing to technological advancements in truck manufacturing, the school can enhance its reputation and attract industry partnerships.
Vanderbilt can capitalize on the focus on domestic manufacturing by developing programs and initiatives that support innovation in the transportation sector. This could include joint research projects, student internships, and industry collaborations that align with national priorities.
The emphasis on securing supply chains offers an opportunity for Vanderbilt’s Center for Transportation and Operational Resilience to engage in policy analysis and advocacy. By providing evidence-based recommendations, the center can influence how supply chain resilience is addressed at the national level.
By engaging with the broader industrial community and policymakers, Vanderbilt can position itself as a leader in the national conversation on manufacturing and trade policy. Hosting conferences, workshops, and public forums on the implications of these policies can further establish Vanderbilt as a hub for innovative thought and practice.

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

Average Relevance Score: 2.8

Timeline for Implementation

N/A – The fact sheet does not specify explicit deadlines or compliance windows (e.g., a set number of days) for the tariffs or offset process, aside from noting that the offset benefit applies to vehicles assembled from 2025 through 2030.

Relevance Score: 1

Impacted Government Organizations

Department of Commerce: The Department of Commerce leads the Section 232 investigation and oversees the process for tariff offset adjustments, making it central to the implementation and administration of these trade measures.
U.S. Customs and Border Protection (CBP): In consultation with the Secretary of Commerce, CBP is tasked with establishing processes for applying tariffs to the non-U.S. content of medium- and heavy-duty truck parts, ensuring proper customs enforcement of this tariff policy.

Relevance Score: 1 (Only two primary Federal Agencies are impacted by this Proclamation.)

Responsible Officials

Secretary of Commerce – Tasked with establishing the process for applying tariffs to the non-U.S. content in truck parts and overseeing the implementation of related measures.
U.S. Customs and Border Protection – Collaborates with the Secretary of Commerce to enforce and execute the tariff application process for qualifying truck parts.

Relevance Score: 5 (Directives affect high-level agency heads, including Cabinet officials, which are integral to implementing these tariff provisions.)