CUSMA exemption to apply to new U.S. tariffs on heavy trucks, parts

October 18, 2025

CUSMA exemption to apply to new U.S. tariffs on heavy trucks, parts

Auto parts imported to the U.S. under North American free trade rules will continue to be exempted — for now — from new tariffs on heavier-duty trucks and components set to go into effect next month, the White House said Friday.

U.S. President Donald Trump signed the new trade proclamation aboard Air Force One that expands his 25 per cent auto tariffs to cover medium and heavy-duty trucks and parts. It also sets a 10 per cent duty for imported transit and school buses, as well as motorcoaches.

The tariffs go into effect Nov. 1.

The proclamation makes official what Trump announced earlier this month on his Truth Social website.

A White House fact sheet on the policy said truck parts compliant with the Canada-U.S. Mexico Agreement on free trade (CUSMA) will continue to be exempt from the tariffs, the same as parts for light trucks and cars currently are.

However, that exemption could end after the Trump administration establishes “a process to apply tariffs to non-U.S. content of the parts,” the statement said.

Medium and heavy-duty trucks built in Canada and shipped to the U.S. under CUSMA rules will also only face tariffs on non-U.S. components, the White House said. That policy mirrors the one in place for lighter autos as well.

The CUSMA exemption does not appear to apply to the 10 per cent tariffs on buses.