Industry Insights
Understanding U.S. Tariffs, One Year Later
A year ago, we broke down a major shift in how commercial vehicles get taxed at the border: new Section 232 tariffs on medium- and heavy-duty trucks and buses.
The original U.S. truck import tariffs are still in place — what’s changed is everything around them.
USMCA content rules adopted in February 2026 now let qualifying vehicles pay tariffs only on their non-U.S. content, while a separate round of metals tariff changes in June quietly shifted upfit costs.
At Model 1, we track these changes so you don’t have to untangle them mid-order.
Where This Started: The October 2025 Proclamation
For anyone catching up, here’s the short version of what took effect November 1, 2025:
- Medium- and heavy-duty trucks (Class III–VIII) and key parts became subject to a 25% tariff.
- Buses became subject to a 10% tariff.
- USMCA-qualifying trucks were positioned to eventually pay tariffs only on non-U.S. content — non-USMCA trucks pay the full 25% on total value.
- An import adjustment offset was created to reward U.S.-assembled trucks and engines, running through October 2030.
- The tariffs apply to used and remanufactured vehicles up to 25 years old, not just new ones.
For fleet buyers and upfitters, that meant cost exposure moved from “if you import” to “almost everyone in this business, somewhere in the supply chain.”
Want the original policy detail? Read our full breakdown: The Future of Commercial Vehicles: Understanding New U.S. Tariffs
What’s Changed Since: Updates Worth Knowing
1. USMCA Content Rules Are Now Live
Since February 2026, importers of USMCA-qualifying trucks can apply to have the 25% tariff assessed only on the vehicle’s non-U.S. parts, not its full value.
It’s not a full USMCA tariff exemption, but for qualifying builds, it’s the closest thing yet.
If your fleet is built on Ford or Chevy chassis from U.S. and Canadian plants, this is the biggest change of the year. One catch: completed buses still pay the flat 10%, USMCA or not.
2. Steel and Aluminum Tariffs Changed Too
Section 232 tariffs on steel and aluminum are separate from truck and bus tariffs.
Since April, these tariffs are charged on the full customs value of covered goods, meaning the whole price of a part, not just the metal inside it.
If you’re adding wheelchair lifts, ramps, bus bodies, or shelving, this cost won’t make headlines about truck tariffs, but it will show up in your build quote.
Here’s how the picture has shifted over the past year:
| November 2025 | September 2026 (Today) | |
| Truck/bus tariff rate | 25% trucks / 10% buses, full value | Same rates, but USMCA content now reduces the base for qualifying vehicles |
| USMCA treatment | Promised, not yet processable | Live since Feb. 2026 — documentation now accepted |
| Metals input costs | Under the pre-2026 framework | Adjusted June 2026 — wider qualifying threshold, new rate structure |
| Broader tariff landscape | Section 122 surcharge in effect | Section 122 expired July 2026; new Canada tariff added Aug. 2026 |
3. A Global Import Tax Ended and Was Replaced
The 10% global surcharge on most imports ended in July 2026, but new tariffs of 10% to 12.5% on goods from about 60 countries replaced it the same day.
Depending on where your parts come from, some may cost less now and others more.
4. A New Tariff on Canadian Goods
In August 2026, a 50% tariff on certain Canadian goods took effect, even on goods that meet USMCA rules.
Vehicles and auto parts aren’t covered for now, but if any of your equipment comes from Canada, check with your supplier.
Rethinking how you finance your next order given the moving cost picture? Lease or Buy: What’s Best for Your Fleet?
The Trucking Tariff Impact on Your Next Order
Whether you manage a school district’s buses, a community’s shuttles, or a transit or commercial fleet, none of this is a reason to delay a fleet decision — lead times remain the bigger risk to manage.
It is a reason to ask a few specific questions before finalizing a spec:
- Does this vehicle or its major components qualify for USMCA preferential treatment, and has that documentation been submitted?
- For upfit work involving steel or aluminum, what’s the country of origin — and does it clear the current 85% threshold?
- Has the quoted price been checked against current tariff schedules, or is it built on rates from an earlier order?
A spec locked six months ago may simply be priced differently today. That’s not a reason to panic — it’s a reason to check before you sign.
Ready to Spec Your Next Order With a Clear Cost Picture?
Trade policy has moved multiple times in the last year, and it will likely move again before your next order. That’s exactly the kind of detail a single accountable partner should be tracking on your behalf.
With Model 1, you can:
- Get a straight read on how current tariffs affect your specific build
- Confirm USMCA documentation before you finalize a spec
- Order with confidence, not guesswork, on where costs stand today
FAQ: Commercial Vehicle Tariffs in 2026
Q: Are the Section 232 truck and bus tariffs from 2025 still in effect?
Yes. The 25% tariff on Class III–VIII trucks and key parts, and the 10% tariff on buses, remain in place as of September 2026. What’s changed is how much of a vehicle’s value those tariffs actually apply to for USMCA-qualifying builds.
Q: Does buying a USMCA-built Ford or Chevy chassis reduce my tariff exposure?
It can. Since February 2026, importers of USMCA-qualifying medium- and heavy-duty vehicles can apply to have tariffs assessed only on the non-U.S. content of the vehicle, rather than its full value — a meaningful change from the original policy.
Q: Do steel and aluminum tariffs affect upfit costs separately from the truck tariff?
Yes. Section 232 metals tariffs were adjusted again in June 2026, with rates now based on the full customs value of covered goods and a lower U.S.-content threshold to qualify for reduced rates. This affects upfit components like bus bodies and structural parts, independent of the truck/bus tariff itself.
Q: Should I wait to place a fleet order until tariff policy settles down?
Not based on trends so far — this policy area has moved multiple times in twelve months and will likely continue to. Waiting typically costs more in lead time than it saves in tariff timing. The better move is confirming current rates and USMCA documentation before you finalize a spec, not delaying the order itself.
Images displayed in this material may be generated or enhanced using artificial intelligence (AI) and are for illustrative purposes only.
