President Trump has set a 25% tariff on medium and heavy-duty trucks—a move praised by Ford but potentially troubling for its crosstown Detroit rivals, GM and Stellantis.
First things first: Some key details about the new levy, which Trump announced on Truth Social, remain unclear as the industry awaits further guidance from the White House.
The tariff, set to take effect Nov. 1, would be separate from the longstanding import taxes on light-duty trucks that have been in place since 1964.
It’s not yet known whether the tariff will apply to Mexico and Canada, or to trade partners such as South Korea and Japan that have existing trade deals with the U.S.
Why it matters: The new tariffs could help erode automaker and dealership profit margins, compounding existing pricing pressures tied to earlier levies (including aluminum and steel) and rising production costs.
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Between the lines: How the Trump administration defines the geographic scope of the new tariff will ultimately determine its impact—though Ford appears to be somewhat insulated.
The Dearborn-based automaker builds 100% of its Super Duty trucks at its Kentucky Truck Plant and Ohio Assembly Plant.
However, GM’s Chevrolet brand assembles some Silverado HD models in Canada, while Stellantis makes its Ram 2500 and 3500 trucks in Mexico.
Toyota, which sells medium and heavy-duty trucks in the U.S. under its Hino Motors subsidiary, primarily manufactures its vehicles in West Virginia.
What they’re saying: “Ford applauds the Trump administration’s action on medium and heavy-trucks, which supports our shared goal of growing the American auto industry and U.S. manufacturing. American autoworkers deserve a level playing field,” said Ford spokesperson Robyn Jackson, (via The Detroit News).
Bottom line: For dealers, the immediate impact depends on brand mix. Ford dealers might gain a pricing advantage, while GM and Stellantis dealers face more potential margin compression or reduced inventory availability as automakers absorb costs or shift production. The real wildcard is whether the administration exempts USMCA partners, which would preserve the status quo for a lot of North American production.
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