Tariff Alerts & Updates
Holman is committed to providing regular tariff updates along with insight on how these conditions could affect your fleet.
United States Tariff Updates
- August 11 – The President announced a 90 day pause on higher reciprocal tariffs on Chinese imports, leaving in place the current 30% tariff as the U.S. and China continue to negotiate a potential trade agreement.
- August 7 – The previously announced country-specific tariffs, impacting goods from more than 90 countries, officially went into effect.
- July 31 – The President increased the tariff rate on goods imported from Canada from 25% to 35%; imported goods that comply with USMCA production rules are still exempt.
- July 31 – The President paused tariffs on goods imported from Mexico for 90 days as the U.S. and Mexico continue to negotiate a potential trade agreement.
- July 31 – The U.S. and South Korea agreed to a trade deal, lowering tariffs on imported goods, including vehicles, to 15%.
- July 27 – The U.S. and the European Union agreed to a trade deal, setting tariffs at 15% on imported goods, including vehicles.
- July 10 – The President announced a 50% tariff on US copper imports, effective August 1.
- June 4 – The recently announced increase to tariffs on imported steel and aluminum – increasing from 25% to 50% – officially went into effect.
- June 2 – The President announced plans to increase the tariffs on steel and aluminum imports from 25% to 50%, effective June 4.
- May 11 – The U.S. and China agreed to temporarily reduce tariffs for 90 days; U.S. tariffs on Chinese imports will be reduced from 145% to 30%; Chinese tariffs on U.S. imports will be reduced from 125% to 10%.
- May 9 – The administration reduced the tariff on cars imported from the UK from 25% to 10% for the first 100,000 vehicles imported each year; additionally, the 25% tariff on steel and aluminum imported from the UK has been eliminated.
- April 30 – The President signed a pair of executive orders to slightly mitigate the impact of automotive tariffs; while the 25% tariff on imported vehicles remains and a 25% tariff on imported parts will go into effect on May 3, the executive orders ensure vehicles are not subject to multiple tariffs such as those on raw material imports or country-specific tariffs.
- April 11 – In response to the President’s action, China announced reciprocal tariffs of 125% on U.S. imports.
- April 9 – The President announced a three-month pause on country-specific “reciprocal” tariffs, with the exception of China. Tariffs on Chinese goods imported to the U.S. would increase to 145%. Other countries would face a baseline tariff of ten percent for at least 90 days. Previously announced 25% tariffs on automobiles, steel, and aluminum remain in effect.
- April 2 – The President enacted a number of far-reaching tariffs that will impact a wide range of imported goods from dozens of countries, including a 25% tariff on imported vehicles.
- March 26 – The President announced a 25% tariff on imported vehicles and automotive parts will go into effect on April 3.
- March 12 – The previously announced 25% tariff on imported steel and aluminum officially went into effect on March 12.
Region & Industry Updates
Tariff Status: 25% tariff on Canadian and Mexican imports went into effect on March 4; Canada announced a reciprocal 25% tariff on April 3 on vehicles imported from the U.S.; all goods that comply with USMCA production rules are currently exempt from these tariffs (with certain exceptions).
On July 31st, the President increased the Canadian tariff rate to 35%; tariffs on goods
imported from Mexico are currently paused as the countries continue to negotiate a
potential trade agreement.
Potential Impact: Increase of $3,000 to $6,000 per vehicle on average; up to $15,000 per vehicle for MD and HD Units.
Tariff Status: On May 11, the U.S. and China agree to a temporary reduction in tariffs for 90 days; this temporary pause was extended on August 11 for an additional 90 days; U.S. tariffs on Chinese imports are currently 30%; Chinese tariffs on U.S. imports are currently 10%.
Potential Impact: This tariff is likely to impact more than $10 billion worth of automotive parts imported from China.
Tariff Status: A 25% tariff on imported vehicles went into effect on April 3; the U.S. has reached trade agreements with Japan, South Korea, and the EU to set tariffs at 15% for imported vehicles.
Potential Impact: Forecast increase of 8.5% to 10% on the average vehicle price in the U.S., ranging from $4,000 to $10,000 depending on model.
Tariff Status: On June 4, a 50% tariff on steel and aluminum imports went into effect; steel and aluminum imported from the UK is subject to a 25% tariff; on August 1, a 50% tariff on copper imports went into effect.
Potential Impact: Projected cost increase of approximately $300 per vehicle on average; projected cost increase of $300 for the typical truck body; other upfit components will vary.
Tariff Status: Energy imports – electricity, crude oil, and gasoline – from Canada are subject to a 10% tariff; most of these imports are currently exempt from this tariff because they are covered by the USMCA production rule.
Potential Impact: The impact of this tariff will vary by region but areas such as the northeast, which relies heavily on Canadian oil imports, may see fuel prices increase by 20 to 40 cents per gallon.
OEM Status – Updated 4/9
Fleet orders received prior to possible pricing actions will be price protected, however, currently awaiting additional information on how this policy applies to fleets with intro-level price agreements.
Any MY25/MY26 orders from fleet customers with a signed CAP agreement are price protected.
Fleet orders placed prior to April 4 are price protected; awaiting additional information.
Paused all fleet ordering effective April 3.
Awaiting additional information.
Awaiting additional information.
Awaiting additional information.
No plans to adjust fleet pricing at this time.
Awaiting additional information.
Awaiting additional information.
Paused all fleet ordering effective April 3.
Awaiting additional information.
No changes to fleet ordering or pricing at this time.
Paused all fleet ordering effective April 3.
MD/HD OEMs
Fleet units ordered after March 29 are subject to the tariff(s) in place at the time of production.
Awaiting additional information.
Awaiting additional information.
Awaiting additional information.
Chassis with a confirmed production date were price protected through April 4; fleet orders received after March 28 for April or May production are subject to full tariff(s) surcharge.
Fleet orders built after June 1 will be subject to a $3,900 tariff surcharge; this is expected to increase.
All new fleet orders that are produced prior to July 1 are subject to a $7,000 tariff surcharge.
Chassis with a confirmed production date were priced protected through April 4; fleet orders received after March 28 for April or May production are subject to full tariff(s) surcharge.
Fleet units ordered after March 29 are subject to the tariff(s) in place at the time of production.
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