Shares of German truckmakers slipped on Friday after President Donald Trump announced the U.S. will impose 25% tariffs on heavy-duty trucks beginning October 1, 2025.
Traton and Daimler Truck dropped between 2% and 3% in early trading.
On the other hand, Volvo rose more than 3%. All of Swedish carmaker’s North American production is concentrated in the U.S., while Daimler Truck faces greater exposure due to its large manufacturing base in Mexico.
The measures come as part of Trump’s plan to protect domestic manufacturers in an industry already squeezed by a wave of trade levies.
“In order to protect our Great Heavy Truck Manufacturers from unfair outside competition, I will be imposing, as of October 1st, 2025, a 25% Tariff on all ‘Heavy (Big!) Trucks’ made in other parts of the World,” Trump said in a Truth Social post Thursday.
He also unveiled tariffs on pharmaceutical products and a range of household goods, including imported kitchen cabinets and certain types of furniture — categories where prices have already climbed sharply in recent months.
Specifically, the U.S. president imposed a 100% tariff on branded drugs, along with a 50% levy on imported kitchen cabinets and bathroom vanities, and a 30% duty on upholstered furniture.
Previous tariffs imposed by President Donald Trump — such as 50% duties on steel, aluminum and copper — have already pushed up costs for U.S. truckmakers.
Many foreign-built trucks, including those from Daimler Truck and International Motors, are assembled in Mexico and typically enter the U.S. tariff-free under the U.S.-Mexico-Canada Agreement, provided about two-thirds of their parts are sourced from North America.
The tariffs were intended to bolster American manufacturing by making imported goods less competitive.
But levies on metals have shifted the supply-demand balance, driving up prices for both imported and domestic materials. As a result, some U.S.-made trucks have ended up more expensive than foreign-built ones.
It remains uncertain whether the newly announced 25% tariff will apply broadly to all heavy-duty trucks or only to those that fail to meet USMCA content requirements.
Source :
https://www.investing.com/news/stock-market-news/german-truck-makers-slip-while-volvo-rises-following-us-tariff-announcement-4257004
