US Imposes New Tariffs on Truck Imports as Trump Signals Potential Trade Policy Shift

On 17 October, US President Donald Trump signed an executive order imposing new tariffs of 25 percent on imports of medium- and heavy-duty trucks and components, effective from 1 November. In a related statement, President Trump announced that a 10 percent tariff would also be levied on imported passenger vehicles.

The move comes despite opposition from business groups. The US Chamber of Commerce had previously urged the administration not to implement new tariffs on heavy-duty trucks. It noted that the top five sources for these imports are Mexico, Canada, Japan, Germany, and Finland, asserting that these nations are either US allies or close partners and do not constitute a threat to US national security.

Data from the US Commerce Department indicates that the United States imported nearly 245,000 medium and heavy-duty trucks last year, with a total trade value exceeding US$20 billion.

A recent research report from Goldman Sachs suggests that the economic burden of such tariffs may fall significantly on American consumers, who could bear 55% of the costs by the end of the year.

Trump Signals Potential Easing

In a potential shift of tone, President Trump signalled a possible easing of trade measures during an interview on the evening of 19 October, indicating that the door for dialogue remains open. Concurrent media reports suggest the administration is quietly relaxing multiple tariff policies.

In recent weeks, the administration has exempted dozens of products from so-called 'reciprocal tariffs' and has demonstrated a willingness to exclude further items-ranging from agricultural products to aircraft components-from tariffs when countries reach trade agreements with the US.

This apparent softening is closely tied to an impending legal ruling. Earlier this year, a US court ruled against the President, finding he lacked the authority to invoke the International Emergency Economic Powers Act to impose tariffs on multiple nations. The administration has appealed to the Supreme Court, which is scheduled to hold hearings on the case in early November.

According to informed administration planners, the push for broader tariff exemptions reflects a growing view within the government that the US should reduce tariffs on goods not produced domestically.

The move, occurring ahead of the Supreme Court hearing, is widely seen as a risk-hedging strategy. Should the court rule against the administration, it could be compelled to refund substantial amounts of tariffs already collected, dealing a significant blow to its fiscal and trade policy. Consequently, the pre-emptive easing of certain tariffs has become a 'preventative' measure.

China and the US to Return to Negotiating Table

In a separate development on the morning of 18 October, Beijing time, Vice Premier He Lifeng, China's lead negotiator for economic and trade matters, held a video conference with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer.

Both sides engaged in what were described as candid, in-depth, and constructive discussions on key issues in bilateral economic relations. They focused on implementing the important consensus reached during successive telephone conversations between the two heads of state this year and agreed to convene a new round of Sino-US economic and trade consultations at the earliest opportunity.

At a regular press conference held by China's Foreign Ministry on 20 October, Spokesperson Guo Jiakun was asked about the resumption of talks. A reporter cited latest reports indicating the US had identified rare earths, fentanyl, and soybeans as the three major issues it has raised with China.

In response, Spokesperson Guo stated that China's position on handling China-US economic and trade issues has been consistent and clear. He reiterated that tariff wars and trade wars are not in the interests of either side, and that both sides should resolve relevant issues through consultation on the basis of equality, mutual respect and reciprocity.