ExecutiveOrdersEO
Proc 10984ProclamationTrump 47 · R Quiet signal

Proclamation 10984

Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses Into the United States

This Proclamation imposes Section 232 national security tariffs of 25% on medium- and heavy-duty vehicles (MHDVs) and key parts, and 10% on buses, effective November 1, 2025. It creates a USMCA content-based tariff system, an import adjustment offset program for U.S. assemblers through 2030, expands the scope for additional parts, and conforms with existing automobile tariff programs while also modifying steel/aluminum tariffs for Canadian/Mexican suppliers supporting U.S. vehicle production.

Federal Register Open PDF 90 FR 48451

Impact dates

  1. import adjustment offset program ends

  2. Secretary establishes process for adding additional MHDVPs to tariff scope

  3. Secretary establishes process for MHDV engine manufacturer offsets

  4. Secretary establishes process for USMCA MHDVP non-U.S. content tariff application

  5. tariffs take effect on goods entered for consumption or withdrawn from warehouse

  6. import adjustment offset program begins for U.S.-assembled MHDVs

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

AutosSteel & aluminumOil & gasDefense primesAerospaceShipping & logistics

Mechanisms

TariffSubsidy / incentiveLicensing

Role pressure

  • ProtectiveDomestic producer — 25% tariffs on imported MHDVs/buses and offset program for U.S. assembly directly protect domestic market share; target is 80% U.S. production share
  • AdverseImporter — 25% duty on MHDVs and key parts, 10% on buses; full value penalty for inaccurate USMCA content declarations; knock-down kits ineligible for offsets
  • MixedDownstream manufacturer — U.S. assemblers gain offset benefits but face higher parts costs; foreign assemblers face tariffs; USMCA content rules create compliance burden
  • AdverseTrading-partner exporter — 43% import penetration in U.S. MHDV market now faces 25% tariff; Canadian/Mexican producers get partial relief via content rules and steel/aluminum adjustments
  • ProtectiveEquipment supplier — domestic MHDVP suppliers benefit from reduced import competition and linked steel/aluminum tariff relief for inputs

Geographies

USCAMXJPKREU

Exposure dates

  • — import adjustment offset program begins for U.S.-assembled MHDVs
  • — import adjustment offset program ends

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

EADSYAirbusAAAlcoaBABoeingCENXCentury AluminumLNGCheniere EnergyCVXChevronCLFCleveland-CliffsCOPConocoPhillipsDACDanaosXOMExxon MobilFDXFedExFFordGEGE AerospaceGEVGE VernovaGDGeneral DynamicsGMGeneral MotorsHONHoneywellHYMTFHyundai MotorLMTLockheed MartinMATXMatsonNOCNorthrop GrummanNUENucorRTXRTXSHELShell

Confidence: high · Policy alerts

Key directives

  • impose 25% ad valorem duty on MHDVs and specified MHDVPs; 10% on buses and HTSUS 8702 vehicles
  • effective November 1, 2025
  • establish USMCA content-based tariff for MHDVs allowing 25% duty on non-U.S. content only
  • delay USMCA preferential treatment for individual MHDVPs until process established for non-U.S. content application
  • create import adjustment offset: 3.75% of aggregate U.S.-assembled MHDV value, Nov 1, 2025-Oct 31, 2030
  • equivalent offset program for MHDV engine manufacturers
  • authorize Secretary to add additional MHDVPs to tariff scope
  • require foreign trade zone admission in 'privileged foreign status'
  • conform tariff stacking rules with Proclamation 10908
  • revise Proclamation 10925 clause (1) to restructure automobile import adjustment offset program
  • allow importer election for automobile parts vs. MHDVP tariff for eligible parts
  • authorize steel/aluminum tariff reductions up to half applicable rate for Canadian/Mexican producers supplying U.S. auto/MHDV manufacturers, with 25% floor

Who is ordered

Timeline

Immediate

  • tariffs take effect November 1, 2025 at 12:01 a.m. EDT
  • USMCA content-based tariff application process begins
  • import adjustment offset program opens for applications

Near term (90d)

  • Secretary to establish process for USMCA MHDVP tariff application to non-U.S. content
  • Secretary to establish equivalent offset process for MHDV engine manufacturers
  • Secretary to establish process for adding additional MHDVPs to tariff scope
  • HTSUS modifications via Federal Register notice

Long term

  • import adjustment offset program runs through October 31, 2030
  • ongoing monitoring and potential modification of tariffs by Secretary
  • potential further action based on import trends and national security reviews
  • tariff stacking rules alignment with auto program persists indefinitely unless modified

Risks & tensions

  • potential WTO disputes over Section 232 national security justification for commercial vehicle tariffs
  • risk of supply chain disruption if foreign parts suppliers exit U.S. market before domestic capacity scales
  • uncertainty in 'United States content' valuation methodology may create compliance disputes and CBP enforcement challenges
  • tariff stacking with existing auto, steel, and aluminum tariffs could create unexpectedly high effective duty rates
  • Canadian and Mexican steel/aluminum tariff relief is contingent on 'newly committed United States production capacity'—vague threshold
  • 25-year vintage exemption (clause 10) may create classification and enforcement complexity
  • conformance with Proclamation 10908 auto program creates interdependency; changes to either program affect both
Proclamation 10984: Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses Into the United States · Executive Orders