"As a fresh slate of tariffs on heavy trucks and buses takes effect, industry players say the companies that make those vehicles in Canada will be feeling pain. Starting today, all foreign imports of medium and heavy-duty trucks and truck parts headed to the U.S. will be tariffed at 25 per cent, and buses at 10 per cent. The new rules leave carveouts for trucks traded under the Canada-U.S.-Mexico Agreement, however the 25 per cent tariff will only apply to their non-American parts."
"It's going to be a lot harder to sell into the U.S. right now, Barber told CBC News. He says a handful of his shipments will be hit by these tariffs, which could add upwards of $100,000 to the cost of the finished heavy-duty semi trucks it makes and sell. We can't eat that cost; it has to go on to the customer. We'd be selling trucks for free or giving money away if we ate the tariffs."
New U.S. tariffs impose 25% on foreign medium and heavy-duty trucks and truck parts and 10% on buses, with USMCA carveouts limited to American-made parts. The U.S. administration frames the measures as addressing national security risks from reliance on imports. The tariffs create immediate cost increases for cross-border shipments, with some shipments facing up to roughly $100,000 in added costs that manufacturers cannot absorb and would pass to buyers. The heavy truck and bus sector is relatively small but highly trade-exposed, with Canada exporting about $5 billion and importing just under $9 billion worth of trucks to and from the U.S. in 2024.
Read at www.cbc.ca
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