This Presidential Proclamation establishes new tariffs on imports of Medium- and Heavy-Duty Vehicles (MHDVs), specific Medium- and Heavy-Duty Vehicle Parts (MHDVPs), and buses, asserting that current import levels threaten United States national security based on a Section 232 investigation.
The action imposes a 25 percent ad valorem duty on most MHDVs and key MHDVPs, and a 10 percent duty on buses, effective November 1, 2025, aiming to stabilize domestic market share at 80 percent, bolster supply chains, and encourage domestic industrial investment.
Furthermore, the proclamation coordinates these new tariffs with existing automobile tariff regimes, introduces complex adjustment offset programs for domestically assembled vehicles and engines to mitigate part import duties, and authorizes implementing agencies to enforce compliance.
Arguments For
The action directly addresses a national security threat identified by the Secretary of Commerce, as imports of MHDVs, MHDVPs, and buses are deemed to be impairing national security under Section 232.
Tariffs are intended to stabilize United States-produced MHDVs' market share at approximately 80 percent, bolstering domestic industrial resilience and supply chains critical for military readiness and critical infrastructure.
The proclamation includes mechanisms, like import adjustment offsets for domestic assembly and parts value deductions under USMCA, to support domestic manufacturing jobs, capital investment, and curb offshoring.
Harmonizing tariffs between previous auto actions (Proclamation 10908) and this new action on MHDVs, MHDVPs, and buses creates a more unified and effective trade remedy against national security risks.
Arguments Against
Imposing new tariffs, such as 25% on MHDVs and 10% on buses, increases costs for businesses and consumers relying on these vehicles, potentially leading to inflation in transportation and logistics sectors.
Mechanisms designed to support domestic assembly, like import adjustment offsets, introduce complexity into customs procedures, potentially leading to administrative burdens or misuse, as noted by penalties for inaccurate declarations.
Relying on Section 232 findings for non-traditional national security industries like commercial vehicles can be seen as an overreach of authority, potentially inviting international trade disputes or retaliation under other trade laws.
Changes to HTSUS classifications and coordination across multiple existing proclamations (e.g., Proclamations 9704, 9705, 9888, 10908, 10925) create overlapping regulatory environments that may confuse importers and supply chains.
Presidential Actions
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
1. Three weeks ago, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effects of imports of medium- and heavy-duty vehicles (MHDVs) (such as trucks), medium- and heavy-duty vehicle parts (MHDVPs), and buses on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended, 19 U.S.C. 1862 (section 232). Based on the facts considered in that investigation, the Secretary found and advised me of his opinion that MHDVs, certain MHDVPs, and buses are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States and provided recommendations for action under section 232 to adjust the imports of MHDVs, certain MHDVPs, and buses so that such imports will not threaten to impair the national security of the United States.
to an investigation under section 232 of the Trade Expansion Act of 1962. The Secretary determined that the volume and circumstances of these imports threaten U.S. national security and provided recommendations for remedial action.
2. The Secretary found that MHDVs are essential to United States national security. MHDVs and MHDVPsplay a vital role in sustaining national security by enabling the Department of War to maintain military readiness. They do so by enabling the transport of personnel, weapons systems, ground defense vehicles, and critical supplies. In addition to aiding critical ground mobility, combat support, and logistics operations throughout all branches of the military, MHDVs and MHDVPs support emergency response across medical, law enforcement, and disaster relief efforts by providing mobile coordination, evacuation, and field-operations capabilities. Beyond crisis scenarios, MHDVs are indispensable to the continuity of American critical infrastructure and economic stability, moving over 70 percent of the Nation’s freight by weight, including essential goods like food, fuel, and medical supplies.
3. The Secretary also found that import penetration from foreign assemblers of MHDVs is substantial and growing. From the 1950s through the 1990s, the United States was an undisputed leader in MHDV manufacturing, with iconic American brands like Ford, General Motors, Chrysler, and others producing nearly all MHDVs domestically. Offshoring of MHDV manufacturing, enabled by foreign industrial practices and other policies, has resulted in an import penetration level of 43 percent of Class 4 through 8 MHDVs sold on the United States market. The United States suffers 50 percent import penetration in Class 8 MHDVs — the heaviest-duty trucks. American companies continue to shift production outside the United States because of favorable dynamics for offshoring.
4. Further, the Secretary found that the United States relies on foreign suppliers for several important categories of MHDVPs. The domestic truck industry is dependent on engines, batteries, transmission shafts, castings, forgings, and other MHDVPs at a level that creates national security vulnerabilities. The supply chain for MHDVPs is much less diversified than for domestic passenger vehicles and light trucks, with significantly fewer United States producers of MHDVPs. Without a secure domestic supply chain for critical MHDVPs, a disruption of imports could strain the ability to execute national defense missions and critical infrastructure requirements, such as transporting personnel, weapons, or essential supplies in a conflict or an emergency.
5. The Secretary also found that there is significant overlap in the components, materials, and manufacturing capacity between the MHDV industry and the bus industry, including because many MHDVPs are used as components in buses. The Secretary noted that buses are vital for United States national security because they directly support, among other things, United States military troop movements, Government disaster response and evacuations, and basic operations in critical infrastructure sectors like energy, healthcare, and emergency services. Yet, as the Secretary found, the bus industry is at risk of becoming overly dependent on foreign supply chains, including MHDVP suppliers, and the United States trade balance in buses has worsened in recent years. The Secretary determined that this risk of dependency threatens the national security of the United States.
6. In light of these findings, the Secretary recommended a range of actions, including actions to adjust the imports of MHDVs, certain MHDVPs, and buses so that such imports will not threaten to impair the national security. For example, the Secretary recommended that I impose a 25 percent ad valorem duty on MHDVs and key MHDVPs and a 10 percent ad valorem duty on buses. The Secretary recommended that I conform the previously established section 232 automobile tariff program with any program I establish to adjust the imports of MHDVs and MHDVPs. The Secretary also recommended that the goal of the adjustment of MHDV imports should be a long-term stabilization of United States-produced MHDVs‘ market share at approximately 80 percent in order to achieve the adjustments’ national security objective.
7. After considering the Secretary’s report, the factors in section 232(d) (19 U.S.C. 1862(d)), and other relevant factors and information, I concur with the Secretary’s finding that imports of MHDVs, certain MHDVPs, and buses threaten to impair the national security of the United States. In my judgment, and in light of the Secretary’s report, the factors in section 232(d) (19 U.S.C. 1862(d)), and other relevant factors and information, I also determine that it is necessary and appropriate to impose a tariff system, as described below, to adjust imports of MHDVs, certain MHDVPs, and buses so that such imports will not threaten to impair the national security of the United States.
8. In my judgment, the actions in this proclamation will, among other things, strengthen supply chains; bolster industrial resilience; create high-quality jobs that will expand the skilled workforce in the United States; and increase domestic capacity utilization and United States-produced market share for MHDVs, certain MHDVPs, and buses. These actions will also encourage capital investment and drive innovation in the United States industries for MHDVs, MHDVPs, and buses, and will strengthen the ability of the military and national defense industry to domestically produce key defense systems and products that support critical ground mobility, combat, and logistics operations. Modernization and renewed investment will curb further erosion of the United States truck and bus industries and improve their efficiency, resource utilization, and product yield. These actions will adjust the imports of MHDVs, certain MHDVPs, and buses so that imports of these products do not threaten to impair the national security.
9. To ensure that the imposition of tariffs on MHDVs, certain MHDVPs, and buses in this proclamation is not circumvented or that the purpose of this action to eliminate the threat to the national security of the United States by imports of MHDVs, certain MHDVPs, and buses is not undermined, I also deem it necessary and appropriate to establish a process to identify and impose tariffs on additional MHDVPs, as further described below.
10. In addition, given the close connections and overlap between part suppliers for the automobile industry and for the medium- and heavy-duty vehicle industry, I determine that it is necessary and appropriate to conform certain aspects of the tariff system imposed in Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended, with the tariff system imposed in this proclamation for MHDVs, certain MHDVPs, and buses. In my judgment, conforming the tariff system imposed in Proclamation 10908, as amended, to address the national security threat found in Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended, with the tariff system imposed in this proclamation for MHDVs, certain MHDVPs, and buses will more effectively address the national security threat found in Proclamation 9888, as amended, and the national security threat found in this proclamation.
11. Section 232 authorizes the President to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security so that such imports will not threaten to impair the national security.
12. Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483) (section 604), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 232, the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), section 604, and section 301 of title 3, United States Code, do hereby proclaim as follows:
(1) Except as otherwise provided in this proclamation, all imports of MHDVs and the MHDVPs specified in Annex I to this proclamation, or in any action designed to address the national security threat found in this proclamation, shall be subject to a 25 percent ad valorem duty rate, except for buses and other vehicles classified in HTSUS heading 8702, which shall be subject to a 10 percent ad valorem duty rate. These tariffs shall apply to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on November 1, 2025, and shall continue in effect, unless such actions are expressly reduced, modified, or terminated. The above tariffs are in addition to any other duties, taxes, fees, exactions, and charges applicable to such products, except as otherwise specified herein.
(2) For MHDVs, except for buses and other vehicles classified in HTSUS heading 8702, that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), importers of such products may submit documentation to the Secretary identifying the amount of United States content in each model imported into the United States. The term “United States content” refers to the value of the MHDV attributable to United States-based activity supporting domestic production, as determined by the Secretary. Thereafter, the Secretary may approve imports of such MHDVs to be eligible to apply the ad valorem duty rate of 25 percent in clause (1) of this proclamation exclusively to the value of the non-United States content of the MHDV. The non-United States content of the MHDV shall be calculated by subtracting the value of the United States content in an MHDV from the total value of the MHDV.
(3) Imports of individual MHDVPs within the scope of the tariffs described in clause (1) of this proclamation that qualify for preferential tariff treatment under the USMCA shall not be subject to the additional ad valorem duty rate imposed under this proclamation until such time that the Secretary, in consultation with the Commissioner of U.S. Customs and Border Protection (CBP), establishes a process to apply the tariff exclusively to the value of the non-United States content of such MHDVPs and publishes a notice in the Federal Register. Imports of MHDV knock-down kits or equivalent parts compilations, as determined by CBP, shall continue to be subject to the additional ad valorem duty rate imposed under this proclamation regardless of USMCA preferential treatment qualification.
(4) I find that it is necessary to reduce duties assessed on MHDVPs accounting for 15 percent of the value of an MHDV assembled in the United States from 2025 through 2030. Accordingly:
(a) For MHDVs assembled in the United States, MHDV manufacturers shall be eligible to receive an import adjustment offset. An MHDV manufacturer may apply to the Secretary for an import adjustment offset amount equal to 3.75 percent of the aggregate value of all MHDVs assembled in the United States by that manufacturer, as determined annually by the Secretary, from November 1, 2025, through October 31, 2030.
(b) The percentage rate provided in subsection (a) of this clause reflects the total duty that would be owed when a 25 percent duty is applied to parts accounting for 15 percent of an MHDV’s value.
(c) Only MHDVs that undergo final assembly in the United States are eligible to be included in this calculation. The manufacturer’s import adjustment offset amount may be used only by importers of record authorized by that manufacturer.
(d) A manufacturer’s import adjustment offset amount may be used only to offset tariff liability related to that manufacturer’s MHDVP tariff liability under clauses (1), (7), or (12) of this proclamation.
(e) Consistent with the need to address the national security threat found in this proclamation, the Secretary shall establish a process for MHDV engine manufacturers equivalent to the process described in subsections (a) through (d) of this clause. Import adjustment offsets for these engine manufacturers shall be based on the aggregate value of MHDV engines assembled by that manufacturer in the United States and shall follow the same accrual percentage rate and United States assembly requirement as the import adjustment offsets for MHDV manufacturers specified in subsections (a) through (d) of this clause.
(f) If the Secretary finds that the import adjustment offset program for a particular product is inconsistent with addressing the threat to the national security found in this proclamation, the Secretary may publish in the Federal Register a notice that prospectively prohibits MHDV or MHDV engine manufacturers from using offset amounts for imports of those products.
(g) Imports of MHDV knock-down kits or other equivalent parts compilations, as determined by CBP, shall not be eligible for import adjustment offsets of the sort specified in this clause.
(5) The Secretary shall take all necessary steps to implement the import adjustment offset program outlined in clause (4) of this proclamation, including supplying CBP with the information necessary for CBP to administer and implement the import adjustment offset, such as importer of record number(s) for the importer(s) eligible to use each offset amount and the approved import adjustment offset amount. CBP shall confer the approved offset amount to the approved importer(s) of record using processes and mechanisms consistent with CBP’s operational framework and tariff administration procedures, including by applying the offset against current tariff obligations due at the time of entry, or by using other lawful methods.
(6) If CBP determines that the declared value of non-United States content of imports under clause (2) of this proclamation is inaccurate due to an overstatement of United States content, the 25 percent tariff specified in clause (1) of this proclamation shall apply to the full value of the MHDV, regardless of the actual United States content. In addition, the 25 percent tariff specified in clause (1) of this proclamation shall be applied to the full value of all MHDVs of the same model imported by the same importer or responsible party from the date of the inaccurate declaration until compliance is verified by CBP. This clause does not apply to or otherwise affect any other applicable duties, taxes, fees, exactions, or charges.
(7) The Secretary shall establish a process for including additional MHDVPs within the scope of the tariffs established in clause (1) of this proclamation. The Secretary may add MHDVPs within the scope of the tariffs established in clause (1) of this proclamation if — after considering the information from the Secretary’s monitoring of imports of MHDVs, MHDVPs, and buses, as well as any factor the Secretary deems appropriate — the Secretary determines that inclusion of the import will reduce or eliminate the national security threat found in this proclamation. Appropriate factors may include the factors in section 232(d) (19 U.S.C. 1862(d)) and whether the imports of MHDVs, MHDVPs, and buses have increased in a manner that threatens to impair the national security of the United States or otherwise undermines the objectives set forth in this proclamation. The process the Secretary establishes may include provisions for the receipt of information and requests for additions of specific MHDVPs from domestic producers of MHDVPs or other interested entities or individuals.
(8) Any product subject to tariffs pursuant to this proclamation, except those eligible for admission under “domestic status” as defined in 19 C.F.R. 146.43, that is admitted into a United States foreign trade zone on or after the effective date of this proclamation, as set forth in clause (1) of this proclamation, must be admitted in “privileged foreign status” as defined in 19 C.F.R. 146.41, and will be subject upon entry for consumption to any duties related to the classification under the applicable HTSUS subheading.
(9) The application of multiple tariffs (stacking) for imports of MHDVs, MHDVPs, and buses subject to this proclamation shall follow the same rules for stacking for imports subject to Proclamation 10908, as amended. For purposes of Executive Order 14289 of April 29, 2025 (Addressing Certain Tariffs on Imported Articles), as amended, a product remains “subject to” this proclamation or Proclamation 10908, as amended, even if the tariff imposed by these two proclamations is not owed and payable due to compliance with USMCA rules of origin, use of an offset adjustment, or tariff reductions effected through the implementation of agreements on trade and security.
(10) The tariffs imposed under clauses (1) through (3) of this proclamation shall not apply to MHDVs or buses and other vehicles classified in HTSUS heading 8702 that were manufactured in a year at least 25 years prior to the date of entry of those MHDVs or buses.
(11) Clause (1) of Proclamation 10925 of April 29, 2025 (Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States), is revised to read as follows:
“(1) To more effectively eliminate the threat to impair national security posed by imports of automobiles and certain automobile parts, I find that it is necessary to reduce duties assessed on automobile parts accounting for 15 percent of the value of an automobile assembled in the United States from 2025 through 2030. Accordingly:
(a) Automobile manufacturers may apply to the Secretary for an import adjustment offset amount equal to 3.75 percent of the aggregate Manufacturer’s Suggested Retail Price (MSRP) value of all automobiles assembled in the United States by the manufacturer, as determined annually by the Secretary, from April 5, 2025, through April 30, 2030.
(b) The percentage rate provided in subsection (a) of this clause reflects the total duty that would be owed when a 25 percent duty is applied to parts accounting for 15 percent of an automobile’s value.
(c) The Secretary shall establish an import adjustment offset equivalent to that specified in subsections (a) and (b) of this clause for automobile engine manufacturers. Offset accrual for these engine manufacturers shall be based on the aggregate value of automobile engines assembled in the United States by the engine manufacturer and shall follow the same accrual percentage rate and United States assembly restriction as the offset program for automobile manufacturers specified in subsection (a) of this clause.
(d) Only automobiles that undergo final assembly in the United States are eligible to be included in this calculation. The manufacturer’s import adjustment offset amount may be used only by importers of record authorized by that manufacturer.
(e) A manufacturer’s import adjustment offset amount may be used only to offset tariff liability related to that manufacturer’s automobile parts tariff liability under Proclamation 10908, as amended, or under clause (12) of the Proclamation of October 17, 2025 (Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses Into the United States).
(f) If the Secretary finds that the offset program is not fulfilling the purposes of Proclamation 10908, as amended, for particular products, the Secretary may publish in the Federal Register anotice that prospectively prohibits automobile or automobile engine manufacturers from using their offset amount for imports of those products.
(g) Imports of automobile knock-down kits or other equivalent parts compilations, as determined by CBP, shall not be eligible for import adjustment offsets.”.
(12) An importer of record may declare an automobile part or MHDVP as subject to the automobile parts tariff pursuant to Proclamation 10908, as amended, or to the MHDVP tariff pursuant to this proclamation. For an automobile or MHDV part to be eligible for this treatment, the part must meet the following conditions:
(a) the part cannot be presently subject to the tariffs imposed pursuant to Proclamation 10908, as amended, or this proclamation;
(b) the part cannot be classifiable in Chapters 72, 73, or 76 of the HTSUS; and
(c) the part must be used for automobile- or MHDV-related production or repair activity in the United States, as attested to by certification from the importer of record.
(13) To more effectively address the national security threats found in Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States); Proclamation 9888, as amended; and this proclamation, I deem it necessary and appropriate to allow modification of tariffs imposed under Proclamation 9704, as amended, and Proclamation 9705, as amended, based on certain increased commitments of certain steel or aluminum products that support United States production capacity of key products, including United States automobiles and MHDVs. Accordingly, the Secretary is authorized to reduce tariffs owed under Proclamation 9704, as amended, and Proclamation 9705, as amended, by up to half the applicable rate for aluminum or steel producers that operate production facilities in Canada or Mexico and supply United States automobile or MHDV manufacturers. Such adjustments shall be limited to quantities of aluminum or steel equal to newly committed United States production capacity, as determined by the Secretary. In no cases shall the adjusted rate under Proclamation 9704, as amended, and Proclamation 9705, as amended, be lower than 25 percent. Rate adjustments shall also be limited to imports of aluminum and steel that qualify for preferential tariff treatment under the USMCA and that were smelted and cast or melted and poured in Canada or Mexico. Any adjustment by the Secretary shall be consistent with the need to address the national security threats I have found under section 232, including in Proclamation 9704, as amended; Proclamation 9705, as amended; Proclamation 9888, as amended; and this proclamation.
(14) The Secretary shall continue to monitor imports of MHDVs, certain MHDVPs, and buses. The Secretary also shall, from time to time, in consultation with any senior executive branch officials the Secretary deems appropriate, review the status of such imports with respect to the national security. The Secretary shall inform the President of any circumstances that, in the Secretary’s opinion, might indicate the need for further action by the President under section 232. The Secretary shall also inform the President of any circumstance that, in the Secretary’s opinion, might indicate that the increase in duty rate provided for in this proclamation is no longer necessary.
(15) As of the effective date of this proclamation, only manufacturing drawback claims made in accordance with subsections (a) and (b) of section 313 of the Tariff Act of 1930, as amended, 19 U.S.C. 1313(a)–(b), and no other drawback, shall be available with respect to the duties imposed on MHDVPs pursuant to this proclamation and on automobile parts pursuant to Proclamation 10908, as amended. The Secretary may adjust a company’s offset accrual amount as necessary to avoid awarding excessive offset accrual benefits for United States-assembled vehicles production that receives drawback benefits upon exportation.
(16) The Secretary, in consultation with the Chair of the United States International Trade Commission and the Commissioner of CBP, shall determine the modifications necessary to the HTSUS to effectuate this proclamation and shall make such modifications to the HTSUS through notice in the Federal Register.
(17) To the extent consistent with applicable law and the purpose of this proclamation; Proclamation 9704, as amended; Proclamation 9705, as amended; and Proclamation 10908, as amended, the Secretary and the Secretary of Homeland Security are directed and authorized to take all actions that are appropriate to implement and effectuate this proclamation and any actions contemplated by this proclamation; Proclamation 9704, as amended; Proclamation 9705, as amended; and Proclamation 10908, as amended, including, consistent with applicable law, the issuance of regulations, rules, guidance, and procedures and the temporary suspension or amendment of regulations, within their respective jurisdictions, and to employ all powers granted to the President under section 232. The Secretary and the Secretary of Homeland Security may, consistent with applicable law, including 3 U.S.C. 301, redelegate any of these functions within their respective departments. All executive departments and agencies shall take all appropriate measures to implement and effectuate this proclamation and Proclamation 10908, as amended.
(18) The Secretary may issue regulations and guidance consistent with this proclamation, including to address operational necessity.
(19) CBP may take any necessary or appropriate measures to administer the tariffs imposed by this proclamation.
(20) Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency. If any provision of this proclamation or the application of any provision to any individual or circumstance is held to be invalid, the remainder of this proclamation and the application of its provisions to any other individuals or circumstances shall not be affected.
IN WITNESS WHEREOF, I have hereunto set my hand this
seventeenth day of October, in the year of our Lord two thousand twenty-five, and of the Independence of the United States of America the two hundred and fiftieth.
DONALD J. TRUMP
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The document begins with the standard structure for Presidential Actions, identifying this document as a Proclamation.
It notes that the Secretary of Commerce submitted a Section 232 investigation report regarding imports of Medium- and Heavy-Duty Vehicles (MHDVs), related parts (MHDVPs), and buses, concluding that these imports threaten U.S. national security.
The Secretary found MHDVs and MHDVPs vital for national security, supporting the Department of War's military readiness, ground mobility, combat support, logistics, and essential civilian infrastructure functions like emergency response and freight transport.
The document cites that import penetration for MHDVs has reached 43%, with 50% for Class 8 trucks, due to offshoring assisted by foreign industrial policies.
Reliance on foreign suppliers for critical MHDVPs is noted as a vulnerability.
The Secretary also highlighted the overlap between MHDV and bus industries, determining that dependency in the bus sector for national security operations (military troop movements, disaster response) also poses a threat.
Based on these findings, the Secretary recommended specific actions, including a 25% ad valorem duty on MHDVs and key MHDVPs, and a 10% duty on buses, with an ultimate goal of stabilizing the domestic market share for MHDVs at 80%.
The President concurs with the findings and determines that imposing a tariff system is necessary and appropriate.
Benefits anticipated include strengthening supply chains, bolstering industrial resilience, creating high-quality jobs, and increasing domestic capacity utilization.
The Proclamation also mandates conforming this new tariff structure with previous automobile tariff proclamations to prevent circumvention.
The enacting clauses cite the authority granted by Section 232 of the Trade Expansion Act of 1962, the International Emergency Economic Powers Act, and Section 604 of the Trade Act of 1974.
The proclamation formally subjects imports of MHDVs and specified MHDVPs to the 25% duty, and buses to the 10% duty, effective November 1, 2025.
Specific implementation details follow, including provisions for USMCA preferential treatment, allowing U.S. content valuation for MHDV tariffs.
Crucially, it establishes an import adjustment offset for manufacturers who assemble MHDVs or engines in the U.S., designed to reduce duties on imported parts equivalent to 15% of the final vehicle's value.
The document also addresses tariff stacking, specifies treatment for goods entering Foreign Trade Zones, and mandates modifications to the Harmonized Tariff Schedule of the United States (HTSUS).
Finally, it directs the Secretaries of Commerce and Homeland Security to implement the necessary regulations and procedures.
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
This line formally indicates that the subsequent text represents an action taken by the President of the United States.
A PROCLAMATION
This label identifies the official nature of the document as a Proclamation, which is a formal declaration issued by the President, often under statutory authority.
1. Three weeks ago, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effects of imports of medium- and heavy-duty vehicles (MHDVs) (such as trucks), medium- and heavy-duty vehicle parts (MHDVPs), and buses on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended, 19 U.S.C. 1862 (section 232). Based on the facts considered in that investigation, the Secretary found and advised me of his opinion that MHDVs, certain MHDVPs, and buses are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States and provided recommendations for action under section 232 to adjust the imports of MHDVs, certain MHDVPs, and buses so that such imports will not threaten to impair the national security of the United States.
The President acknowledges receipt of the Secretary of Commerce's report concerning imports of MHDVs, MHDVPs, and buses under Section 232 authority.
Based on this report, the Secretary concluded that these imports threaten U.S. national security and recommended specific corrective actions.
2. The Secretary found that MHDVs are essential to United States national security. MHDVs and MHDVPsplay a vital role in sustaining national security by enabling the Department of War to maintain military readiness. They do so by enabling the transport of personnel, weapons systems, ground defense vehicles, and critical supplies. In addition to aiding critical ground mobility, combat support, and logistics operations throughout all branches of the military, MHDVs and MHDVPs support emergency response across medical, law enforcement, and disaster relief efforts by providing mobile coordination, evacuation, and field-operations capabilities. Beyond crisis scenarios, MHDVs are indispensable to the continuity of American critical infrastructure and economic stability, moving over 70 percent of the Nation’s freight by weight, including essential goods like food, fuel, and medical supplies.
This paragraph details the Secretary's finding on the national security importance of MHDVs and MHDVPs.
These vehicles are deemed critical for military operations, supporting the transport of personnel, weapons, and supplies.
They also sustain critical civilian infrastructure by enabling emergency services, disaster relief, and the movement of over 70 percent of the nation's freight by weight.
3. The Secretary also found that import penetration from foreign assemblers of MHDVs is substantial and growing. From the 1950s through the 1990s, the United States was an undisputed leader in MHDV manufacturing, with iconic American brands like Ford, General Motors, Chrysler, and others producing nearly all MHDVs domestically. Offshoring of MHDV manufacturing, enabled by foreign industrial practices and other policies, has resulted in an import penetration level of 43 percent of Class 4 through 8 MHDVs sold on the United States market. The United States suffers 50 percent import penetration in Class 8 MHDVs — the heaviest-duty trucks. American companies continue to shift production outside the United States because of favorable dynamics for offshoring.
The Secretary observed that foreign producers hold a large and increasing share of the U.S. MHDV market, which contrasts with historical domestic dominance.
Offshoring, facilitated by global industrial policies, has led to 43% import penetration across Class 4-8 MHDVs, including 50% penetration in the heaviest Class 8 trucks.
4. Further, the Secretary found that the United States relies on foreign suppliers for several important categories of MHDVPs. The domestic truck industry is dependent on engines, batteries, transmission shafts, castings, forgings, and other MHDVPs at a level that creates national security vulnerabilities. The supply chain for MHDVPs is much less diversified than for domestic passenger vehicles and light trucks, with significantly fewer United States producers of MHDVPs. Without a secure domestic supply chain for critical MHDVPs, a disruption of imports could strain the ability to execute national defense missions and critical infrastructure requirements, such as transporting personnel, weapons, or essential supplies in a conflict or an emergency.
Reliance on foreign sources for crucial MHDV parts, such as engines and transmissions, creates national security risks for the domestic industry.
This parts supply chain is less diverse than that for passenger vehicles, meaning import disruptions could severely impact national defense and critical infrastructure logistics during emergencies.
5. The Secretary also found that there is significant overlap in the components, materials, and manufacturing capacity between the MHDV industry and the bus industry, including because many MHDVPs are used as components in buses. The Secretary noted that buses are vital for United States national security because they directly support, among other things, United States military troop movements, Government disaster response and evacuations, and basic operations in critical infrastructure sectors like energy, healthcare, and emergency services. Yet, as the Secretary found, the bus industry is at risk of becoming overly dependent on foreign supply chains, including MHDVP suppliers, and the United States trade balance in buses has worsened in recent years. The Secretary determined that this risk of dependency threatens the national security of the United States.
Because MHDV parts are often used in bus manufacturing, the Secretary noted a linkage between the two industries.
Buses are crucial for national security needs, like troop movements and disaster response, in sectors like energy and healthcare.
The finding indicates that the bus industry's increasing reliance on foreign supply chains, including MHDVP suppliers, threatens its security role.
6. In light of these findings, the Secretary recommended a range of actions, including actions to adjust the imports of MHDVs, certain MHDVPs, and buses so that such imports will not threaten to impair the national security. For example, the Secretary recommended that I impose a 25 percent ad valorem duty on MHDVs and key MHDVPs and a 10 percent ad valorem duty on buses. The Secretary recommended that I conform the previously established section 232 automobile tariff program with any program I establish to adjust the imports of MHDVs and MHDVPs. The Secretary also recommended that the goal of the adjustment of MHDV imports should be a long-term stabilization of United States-produced MHDVs‘ market share at approximately 80 percent in order to achieve the adjustments’ national security objective.
The Secretary recommended specific tariff adjustments to mitigate the national security risk, suggesting a 25% tariff on MHDVs and key MHDVPs, and a 10% tariff on buses.
The Secretary further advised aligning this new action with the prior Section 232 automobile tariff structure, aiming for a long-term goal where 80% of MHDVs sold in the U.S. are domestically produced.
7. After considering the Secretary’s report, the factors in section 232(d) (19 U.S.C. 1862(d)), and other relevant factors and information, I concur with the Secretary’s finding that imports of MHDVs, certain MHDVPs, and buses threaten to impair the national security of the United States. In my judgment, and in light of the Secretary’s report, the factors in section 232(d) (19 U.S.C. 1862(d)), and other relevant factors and information, I also determine that it is necessary and appropriate to impose a tariff system, as described below, to adjust imports of MHDVs, certain MHDVPs, and buses so that such imports will not threaten to impair the national security of the United States.
The President formally agrees with the Secretary's conclusion that imports of MHDVs, MHDVPs, and buses negatively affect the national security.
The President invokes the authority under Section 232(d) and other factors to determine that a new tariff system is required to adjust these imports and eliminate the identified threat.
8. In my judgment, the actions in this proclamation will, among other things, strengthen supply chains; bolster industrial resilience; create high-quality jobs that will expand the skilled workforce in the United States; and increase domestic capacity utilization and United States-produced market share for MHDVs, certain MHDVPs, and buses. These actions will also encourage capital investment and drive innovation in the United States industries for MHDVs, MHDVPs, and buses, and will strengthen the ability of the military and national defense industry to domestically produce key defense systems and products that support critical ground mobility, combat, and logistics operations. Modernization and renewed investment will curb further erosion of the United States truck and bus industries and improve their efficiency, resource utilization, and product yield. These actions will adjust the imports of MHDVs, certain MHDVPs, and buses so that imports of these products do not threaten to impair the national security.
The expected benefits of imposing these actions include strengthening supply chains, improving industrial resilience, generating high-quality jobs, and increasing the domestic market share for these vehicles and parts.
These measures are also intended to boost capital investment, drive innovation, and improve the domestic defense industry’s capability to produce critical ground mobility systems.
9. To ensure that the imposition of tariffs on MHDVs, certain MHDVPs, and buses in this proclamation is not circumvented or that the purpose of this action to eliminate the threat to the national security of the United States by imports of MHDVs, certain MHDVPs, and buses is not undermined, I also deem it necessary and appropriate to establish a process to identify and impose tariffs on additional MHDVPs, as further described below.
To prevent importers from avoiding the imposed tariffs or undermining the national security objective, the President finds it necessary to create a mechanism for identifying and imposing tariffs on additional categories of MHDVPs.
10. In addition, given the close connections and overlap between part suppliers for the automobile industry and for the medium- and heavy-duty vehicle industry, I determine that it is necessary and appropriate to conform certain aspects of the tariff system imposed in Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended, with the tariff system imposed in this proclamation for MHDVs, certain MHDVPs, and buses. In my judgment, conforming the tariff system imposed in Proclamation 10908, as amended, to address the national security threat found in Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended, with the tariff system imposed in this proclamation for MHDVs, certain MHDVPs, and buses will more effectively address the national security threat found in Proclamation 9888, as amended, and the national security threat found in this proclamation.
Due to the shared parts suppliers between the light vehicle and the MHDV/bus industries, the President deems it essential to align the tariff system established by Proclamation 10908 (automobiles) with the new system for MHDVs.
This harmonization is intended to create a more effective response to the national security threats identified in both the current proclamation and Proclamation 9888.
11. Section 232 authorizes the President to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security so that such imports will not threaten to impair the national security.
This section explicitly states the statutory authority granted to the President under Section 232, which allows for adjustments to imports that threaten national security.
12. Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483) (section 604), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
This cites Section 604 of the Trade Act of 1974, which grants the President the power to implement statutory changes affecting import treatment directly into the Harmonized Tariff Schedule of the United States (HTSUS), including imposing new duties.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 232, the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), section 604, and section 301 of title 3, United States Code, do hereby proclaim as follows:
This is the formal command section of the proclamation, where the President, citing constitutional authority and specific trade laws (Section 232, IEEPA, Section 604, 3 U.S.C. 301), begins to order the specific actions.
(1) Except as otherwise provided in this proclamation, all imports of MHDVs and the MHDVPs specified in Annex I to this proclamation, or in any action designed to address the national security threat found in this proclamation, shall be subject to a 25 percent ad valorem duty rate, except for buses and other vehicles classified in HTSUS heading 8702, which shall be subject to a 10 percent ad valorem duty rate. These tariffs shall apply to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on November 1, 2025, and shall continue in effect, unless such actions are expressly reduced, modified, or terminated. The above tariffs are in addition to any other duties, taxes, fees, exactions, and charges applicable to such products, except as otherwise specified herein.
This clause establishes the core tariff rates: 25 percent ad valorem on most MHDVs and specified MHDVPs, and a 10 percent ad valorem duty on buses (HTSUS heading 8702).
These duties take effect on November 1, 2025, and are cumulative, meaning they are applied on top of any existing duties.
(2) For MHDVs, except for buses and other vehicles classified in HTSUS heading 8702, that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), importers of such products may submit documentation to the Secretary identifying the amount of United States content in each model imported into the United States. The term “United States content” refers to the value of the MHDV attributable to United States-based activity supporting domestic production, as determined by the Secretary. Thereafter, the Secretary may approve imports of such MHDVs to be eligible to apply the ad valorem duty rate of 25 percent in clause (1) of this proclamation exclusively to the value of the non-United States content of the MHDV. The non-United States content of the MHDV shall be calculated by subtracting the value of the United States content in an MHDV from the total value of the MHDV.
This provision allows MHDVs qualifying under USMCA to have the 25% tariff applied only to the value of their non-U.S. content.
Importers must document the 'United States content' value, determined by the Secretary, which is then subtracted from the total value to calculate the taxable base.
(3) Imports of individual MHDVPs within the scope of the tariffs described in clause (1) of this proclamation that qualify for preferential tariff treatment under the USMCA shall not be subject to the additional ad valorem duty rate imposed under this proclamation until such time that the Secretary, in consultation with the Commissioner of U.S. Customs and Border Protection (CBP), establishes a process to apply the tariff exclusively to the value of the non-United States content of such MHDVPs and publishes a notice in the Federal Register. Imports of MHDV knock-down kits or equivalent parts compilations, as determined by CBP, shall continue to be subject to the additional ad valorem duty rate imposed under this proclamation regardless of USMCA preferential treatment qualification.
For USMCA-qualifying MHDV parts, the additional tariff will not be applied until the Secretary and CBP finalize a process to calculate the tariff based only on non-U.S. content and publish notice. However, imports described as 'knock-down kits' will remain subject to the full tariff regardless of USMCA status.
(4) I find that it is necessary to reduce duties assessed on MHDVPs accounting for 15 percent of the value of an MHDV assembled in the United States from 2025 through 2030. Accordingly:
(a) For MHDVs assembled in the United States, MHDV manufacturers shall be eligible to receive an import adjustment offset. An MHDV manufacturer may apply to the Secretary for an import adjustment offset amount equal to 3.75 percent of the aggregate value of all MHDVs assembled in the United States by that manufacturer, as determined annually by the Secretary, from November 1, 2025, through October 31, 2030.
(b) The percentage rate provided in subsection (a) of this clause reflects the total duty that would be owed when a 25 percent duty is applied to parts accounting for 15 percent of an MHDV’s value.
(c) Only MHDVs that undergo final assembly in the United States are eligible to be included in this calculation. The manufacturer’s import adjustment offset amount may be used only by importers of record authorized by that manufacturer.
(d) A manufacturer’s import adjustment offset amount may be used only to offset tariff liability related to that manufacturer’s MHDVP tariff liability under clauses (1), (7), or (12) of this proclamation.
(e) Consistent with the need to address the national security threat found in this proclamation, the Secretary shall establish a process for MHDV engine manufacturers equivalent to the process described in subsections (a) through (d) of this clause. Import adjustment offsets for these engine manufacturers shall be based on the aggregate value of MHDV engines assembled by that manufacturer in the United States and shall follow the same accrual percentage rate and United States assembly requirement as the import adjustment offsets for MHDV manufacturers specified in subsections (a) through (d) of this clause.
(f) If the Secretary finds that the import adjustment offset program for a particular product is inconsistent with addressing the threat to the national security found in this proclamation, the Secretary may publish in the Federal Register a notice that prospectively prohibits MHDV or MHDV engine manufacturers from using offset amounts for imports of those products.
(g) Imports of MHDV knock-down kits or other equivalent parts compilations, as determined by CBP, shall not be eligible for import adjustment offsets of the sort specified in this clause.
This lengthy subsection introduces an Import Adjustment Offset to reduce the tariff burden on parts that constitute up to 15% of an MHDV assembled domestically, running from 2025 through 2030.
Under (4)(a), manufacturers who assemble MHDVs in the U.S. can claim an offset equal to 3.75% of their aggregate assembled value.
Clause (4)(b) clarifies that this rate corresponds mathematically to offsetting the 25% duty on 15% of the vehicle's value.
Eligibility is strictly limited to vehicles receiving final assembly in the U.S. (4)(c), and the offset can only be used against MHDVP tariff liability (4)(d).
A similar offset mechanism is mandated for MHDV engine manufacturers (4)(e).
The Secretary retains the authority to prospectively prohibit the use of offsets if they conflict with national security goals (4)(f), and knock-down kits are ineligible for these offsets (4)(g).
(5) The Secretary shall take all necessary steps to implement the import adjustment offset program outlined in clause (4) of this proclamation, including supplying CBP with the information necessary for CBP to administer and implement the import adjustment offset, such as importer of record number(s) for the importer(s) eligible to use each offset amount and the approved import adjustment offset amount. CBP shall confer the approved offset amount to the approved importer(s) of record using processes and mechanisms consistent with CBP’s operational framework and tariff administration procedures, including by applying the offset against current tariff obligations due at the time of entry, or by using other lawful methods.
The Secretary must implement the offset program by providing necessary data, like authorized importer numbers and offset amounts, to U.S. Customs and Border Protection (CBP).
CBP will then apply these approved offsets against current tariff liabilities at the time of entry or through other established operational methods.
(6) If CBP determines that the declared value of non-United States content of imports under clause (2) of this proclamation is inaccurate due to an overstatement of United States content, the 25 percent tariff specified in clause (1) of this proclamation shall apply to the full value of the MHDV, regardless of the actual United States content. In addition, the 25 percent tariff specified in clause (1) of this proclamation shall be applied to the full value of all MHDVs of the same model imported by the same importer or responsible party from the date of the inaccurate declaration until compliance is verified by CBP. This clause does not apply to or otherwise affect any other applicable duties, taxes, fees, exactions, or charges.
If CBP finds that an importer overstated the U.S. content to lower the taxable base under Clause (2), severe penalties apply.
The 25% tariff will be enforced against the MHDV's full value, not just the non-U.S. portion, for that specific import and all subsequent models imported by the same party until CBP verifies compliance.
(7) The Secretary shall establish a process for including additional MHDVPs within the scope of the tariffs established in clause (1) of this proclamation. The Secretary may add MHDVPs within the scope of the tariffs established in clause (1) of this proclamation if — after considering the information from the Secretary’s monitoring of imports of MHDVs, MHDVPs, and buses, as well as any factor the Secretary deems appropriate — the Secretary determines that inclusion of the import will reduce or eliminate the national security threat found in this proclamation. Appropriate factors may include the factors in section 232(d) (19 U.S.C. 1862(d)) and whether the imports of MHDVs, MHDVPs, and buses have increased in a manner that threatens to impair the national security of the United States or otherwise undermines the objectives set forth in this proclamation. The process the Secretary establishes may include provisions for the receipt of information and requests for additions of specific MHDVPs from domestic producers of MHDVPs or other interested entities or individuals.
The Secretary is required to develop a methodology for adding more MHDVPs to the tariff list established in Clause (1).
Additions are conditional upon the Secretary determining that the inclusion alleviates the national security threat, taking into account Section 232(d) factors and import monitoring.
This process must allow domestic producers and interested parties to request that specific parts be added.
(8) Any product subject to tariffs pursuant to this proclamation, except those eligible for admission under “domestic status” as defined in 19 C.F.R. 146.43, that is admitted into a United States foreign trade zone on or after the effective date of this proclamation, as set forth in clause (1) of this proclamation, must be admitted in “privileged foreign status” as defined in 19 C.F.R. 146.41, and will be subject upon entry for consumption to any duties related to the classification under the applicable HTSUS subheading.
This directs how goods entering Foreign Trade Zones (FTZs) are treated after the tariff effective date.
Unless they qualify for 'domestic status,' these products must enter the FTZ in 'privileged foreign status' and become subject to the newly imposed duties upon eventual entry into the U.S. economy.
(9) The application of multiple tariffs (stacking) for imports of MHDVs, MHDVPs, and buses subject to this proclamation shall follow the same rules for stacking for imports subject to Proclamation 10908, as amended. For purposes of Executive Order 14289 of April 29, 2025 (Addressing Certain Tariffs on Imported Articles), as amended, a product remains “subject to” this proclamation or Proclamation 10908, as amended, even if the tariff imposed by these two proclamations is not owed and payable due to compliance with USMCA rules of origin, use of an offset adjustment, or tariff reductions effected through the implementation of agreements on trade and security.
Rules regarding the stacking (applying multiple tariffs simultaneously) of these new duties on MHDVs, MHDVPs, and buses must mirror the procedures established for the prior automobile tariffs (Proclamation 10908).
A product remains technically 'subject to' both proclamations even if the actual duty payment is waived due to USMCA rules or the use of an offset.
(10) The tariffs imposed under clauses (1) through (3) of this proclamation shall not apply to MHDVs or buses and other vehicles classified in HTSUS heading 8702 that were manufactured in a year at least 25 years prior to the date of entry of those MHDVs or buses.
This clause exempts antique vehicles—MHDVs or buses manufactured 25 or more years before their date of entry into the U.S.—from the tariffs established in the first three clauses.
(11) Clause (1) of Proclamation 10925 of April 29, 2025 (Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States), is revised to read as follows:
“(1) To more effectively eliminate the threat to impair national security posed by imports of automobiles and certain automobile parts, I find that it is necessary to reduce duties assessed on automobile parts accounting for 15 percent of the value of an automobile assembled in the United States from 2025 through 2030. Accordingly:
(a) Automobile manufacturers may apply to the Secretary for an import adjustment offset amount equal to 3.75 percent of the aggregate Manufacturer’s Suggested Retail Price (MSRP) value of all automobiles assembled in the United States by the manufacturer, as determined annually by the Secretary, from April 5, 2025, through April 30, 2030.
(b) The percentage rate provided in subsection (a) of this clause reflects the total duty that would be owed when a 25 percent duty is applied to parts accounting for 15 percent of an automobile’s value.
(c) The Secretary shall establish an import adjustment offset equivalent to that specified in subsections (a) and (b) of this clause for automobile engine manufacturers. Offset accrual for these engine manufacturers shall be based on the aggregate value of automobile engines assembled in the United States by the engine manufacturer and shall follow the same accrual percentage rate and United States assembly restriction as the offset program for automobile manufacturers specified in subsection (a) of this clause.
(d) Only automobiles that undergo final assembly in the United States are eligible to be included in this calculation. The manufacturer’s import adjustment offset amount may be used only by importers of record authorized by that manufacturer.
(e) A manufacturer’s import adjustment offset amount may be used only to offset tariff liability related to that manufacturer’s automobile parts tariff liability under Proclamation 10908, as amended, or under clause (12) of the Proclamation of October 17, 2025 (Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses Into the United States).
(f) If the Secretary finds that the offset program is not fulfilling the purposes of Proclamation 10908, as amended, for particular products, the Secretary may publish in the Federal Register anotice that prospectively prohibits automobile or automobile engine manufacturers from using their offset amount for imports of those products.
(g) Imports of automobile knock-down kits or other equivalent parts compilations, as determined by CBP, shall not be eligible for import adjustment offsets.”.
This clause amends Proclamation 10925, replacing its Clause (1) to align auto parts relief with the new MHDV structure (Clause 4).
The revision establishes an import adjustment offset for automobile manufacturers and engine manufacturers based on 3.75% of the value of domestically assembled vehicles/engines, designed to offset the 25% tariff on 15% of parts value between 2025 and 2030.
This offset can be used against liability under the original auto tariff (Proclamation 10908) or the new MHDV tariff, provided the automobile undergoes final assembly in the U.S.
(12) An importer of record may declare an automobile part or MHDVP as subject to the automobile parts tariff pursuant to Proclamation 10908, as amended, or to the MHDVP tariff pursuant to this proclamation. For an automobile or MHDV part to be eligible for this treatment, the part must meet the following conditions:
(a) the part cannot be presently subject to the tariffs imposed pursuant to Proclamation 10908, as amended, or this proclamation;
(b) the part cannot be classifiable in Chapters 72, 73, or 76 of the HTSUS; and
(c) the part must be used for automobile- or MHDV-related production or repair activity in the United States, as attested to by certification from the importer of record.
This section permits importers to choose whether to classify certain auto parts or MHDVPs under the older auto tariff (Proclamation 10908) or the new MHDVP tariff.
Eligibility requires that the part is not already subject to either tariff, that it does not fall under specifically excluded HTSUS Chapters 72, 73, or 76 (generally base metals), and that the importer certifies it is for use in U.S. auto or MHDV production or repair.
(13) To more effectively address the national security threats found in Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States); Proclamation 9888, as amended; and this proclamation, I deem it necessary and appropriate to allow modification of tariffs imposed under Proclamation 9704, as amended, and Proclamation 9705, as amended, based on certain increased commitments of certain steel or aluminum products that support United States production capacity of key products, including United States automobiles and MHDVs. Accordingly, the Secretary is authorized to reduce tariffs owed under Proclamation 9704, as amended, and Proclamation 9705, as amended, by up to half the applicable rate for aluminum or steel producers that operate production facilities in Canada or Mexico and supply United States automobile or MHDV manufacturers. Such adjustments shall be limited to quantities of aluminum or steel equal to newly committed United States production capacity, as determined by the Secretary. In no cases shall the adjusted rate under Proclamation 9704, as amended, and Proclamation 9705, as amended, be lower than 25 percent. Rate adjustments shall also be limited to imports of aluminum and steel that qualify for preferential tariff treatment under the USMCA and that were smelted and cast or melted and poured in Canada or Mexico. Any adjustment by the Secretary shall be consistent with the need to address the national security threats I have found under section 232, including in Proclamation 9704, as amended; Proclamation 9705, as amended; Proclamation 9888, as amended; and this proclamation.
This clause modifies existing steel and aluminum tariffs (Proclamations 9704 and 9705) based on support for renewed domestic auto and MHDV production capacity.
The Secretary can reduce these tariffs by up to half for Canadian or Mexican producers of steel or aluminum that commit to supplying U.S. manufacturers, provided the adjusted rate is not below 25%.
These reductions are strictly limited to USMCA-qualifying aluminum/steel that underwent initial smelting/casting in those countries, and must align with all existing national security findings.
(14) The Secretary shall continue to monitor imports of MHDVs, certain MHDVPs, and buses. The Secretary also shall, from time to time, in consultation with any senior executive branch officials the Secretary deems appropriate, review the status of such imports with respect to the national security. The Secretary shall inform the President of any circumstances that, in the Secretary’s opinion, might indicate the need for further action by the President under section 232. The Secretary shall also inform the President of any circumstance that, in the Secretary’s opinion, might indicate that the increase in duty rate provided for in this proclamation is no longer necessary.
This mandates ongoing monitoring of MHDV, MHDVP, and bus imports by the Secretary of Commerce regarding national security.
The Secretary must periodically report to the President regarding any circumstances suggesting the need for new Section 232 action or, conversely, any circumstances indicating that the current tariffs are no longer required.
(15) As of the effective date of this proclamation, only manufacturing drawback claims made in accordance with subsections (a) and (b) of section 313 of the Tariff Act of 1930, as amended, 19 U.S.C. 1313(a)–(b), and no other drawback, shall be available with respect to the duties imposed on MHDVPs pursuant to this proclamation and on automobile parts pursuant to Proclamation 10908, as amended. The Secretary may adjust a company’s offset accrual amount as necessary to avoid awarding excessive offset accrual benefits for United States-assembled vehicles production that receives drawback benefits upon exportation.
This limits the type of duty refund claims available upon exportation to only those specific manufacturing drawback claims under Section 313(a)-(b) for duties paid under this MHDV proclamation and the prior auto parts proclamation.
The Secretary can adjust offset amounts if a company receives both an offset benefit and an export drawback benefit to prevent double-dipping.
(16) The Secretary, in consultation with the Chair of the United States International Trade Commission and the Commissioner of CBP, shall determine the modifications necessary to the HTSUS to effectuate this proclamation and shall make such modifications to the HTSUS through notice in the Federal Register.
The Secretary, working with the International Trade Commission Chair and CBP Commissioner, must determine and officially announce necessary changes to the Harmonized Tariff Schedule of the United States (HTSUS) via a Federal Register notice to put this proclamation into effect.
(17) To the extent consistent with applicable law and the purpose of this proclamation; Proclamation 9704, as amended; Proclamation 9705, as amended; and Proclamation 10908, as amended, the Secretary and the Secretary of Homeland Security are directed and authorized to take all actions that are appropriate to implement and effectuate this proclamation and any actions contemplated by this proclamation; Proclamation 9704, as amended; Proclamation 9705, as amended; and Proclamation 10908, as amended, including, consistent with applicable law, the issuance of regulations, rules, guidance, and procedures and the temporary suspension or amendment of regulations, within their respective jurisdictions, and to employ all powers granted to the President under section 232. The Secretary and the Secretary of Homeland Security may, consistent with applicable law, including 3 U.S.C. 301, redelegate any of these functions within their respective departments. All executive departments and agencies shall take all appropriate measures to implement and effectuate this proclamation and Proclamation 10908, as amended.
The Secretary of Commerce and the Secretary of Homeland Security receive direction and authorization to perform all necessary actions, issue regulations, and use Section 232 powers to implement this proclamation and previous related actions (9704, 9705, 10908).
They may also delegate these functions within their departments.
(18) The Secretary may issue regulations and guidance consistent with this proclamation, including to address operational necessity.
The Secretary of Commerce has the authority to issue specific regulations and guidance necessary for the operational execution of this Proclamation.
(19) CBP may take any necessary or appropriate measures to administer the tariffs imposed by this proclamation.
CBP is authorized to take all necessary physical or procedural steps required to manage and enforce the new tariffs established herein.
(20) Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency. If any provision of this proclamation or the application of any provision to any individual or circumstance is held to be invalid, the remainder of this proclamation and the application of its provisions to any other individuals or circumstances shall not be affected.
This standard severability clause establishes that this proclamation overrides any conflicting provisions in prior executive orders or proclamations.
It also ensures that if one part of the document is legally invalidated, the remaining unaffected parts remain in full force.
IN WITNESS WHEREOF, I have hereunto set my hand this
seventeenth day of October, in the year of our Lord two thousand twenty-five, and of the Independence of the United States of America the two hundred and fiftieth.
DONALD J. TRUMP
This section concludes the action, formally documenting that the President signed the proclamation on October 17, 2025, marking the 250th year of U.S. Independence.
This provides a hyperlink directing readers to Annex I, which contains the specific HTSUS details or classifications of the MHDVPs subject to the new 25 percent tariff.
This concluding metadata shows the direct permalink for the action and the date it was posted on the White House website.