ATA, Chamber of Commerce Oppose Federal Truck Security Probe
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American Trucking Associations and the U.S. Chamber of Commerce are voicing opposition to a proposed federal investigation into whether the importation of medium- and heavy-duty trucks and parts poses a threat to national security.
Relative to trucking, ATA said potential outcomes from the proposed investigation threaten to send costs soaring for trucking fleets.
At issue is a so-called Section 232 investigation that would be conducted by the secretary of commerce under the authority of the Trade Expansion Act of 1962. The purpose of such investigations is to determine the effect of imports on national security. The proposal was announced April 23.
“In general, ATA is opposed to this investigation and does not believe that the importation of heavy-duty trucks poses a national security threat,” ATA wrote in comments filed May 16. “Furthermore, while not part of this investigation, we are concerned that other tariffs are having a significant impact on truck manufacturers in the U.S. and thus driving up the price of trucks purchased by motor carriers.”
It noted that some of these tariffs — adopted under Section 232 — include recent tariffs on steel and aluminum. ATA also cited tariffs adopted by the Trump administration under the International Emergency Economic Powers Act against various countries, including China.
Specific to the purchase of new trucks, ATA voiced concerns that the investigation could lead to new tariffs that would compound those already in effect.
“Heavy-duty tractors bought by U.S. carriers only come from two places: the United States and Mexico,” ATA wrote. “There are virtually no other countries that export finished heavy-duty tractors into the U.S. market. As a United States, Mexico, Canada Agreement country, we do not believe Mexican truck production poses a national security risk to the U.S. In fact, truck production throughout North America is highly integrated.”
The chamber in its comments also outlined the economic risks a new round of tariffs would pose to the U.S. supply chain.
“The ability to move freight across the country is critical to the competitiveness of a wide range of sectors of the U.S. economy, from manufacturing and technology firms to food and agriculture,” it wrote. “One U.S. Chamber member company noted it is expecting the return of pandemic-era ‘paralysis’ within the freight industry due to lack of capacity because of the chilling effect the tariffs imposed to date are having on the industry. Indeed, the nation’s economic health is tied to that of the trucking and logistics sector and to the manufacturers that produce these trucks.”
Workers at International Motors' Escobedo Assembly Plant in Mexico. (International Motors)
ATA said motor carriers won’t be able to easily pass along additional tariff-related costs to their customers.
“There is a reason why operating margins are so low: Trucking is a highly competitive business with hundreds of thousands of participants. Trucking is one of the few businesses where the pool of competitors is not limited by size or location, with small fleets competing against large ones and East Coast-based companies competing with those based on the West Coast,” ATA wrote. “As a result, underbidding is very common, which leads to very small margins and the inability to pass along increased operating costs to the customer.”
ATA continued, “Motor carriers can’t just absorb higher truck prices or pass them along to customers. Instead, fleets will be faced with no other option but to drastically reduce truck buying by extending trade cycles. This will lead to a large drop in truck manufacturing in the U.S. and Mexico as well as a corresponding drop in manufacturing of parts for new trucks.”
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The president can concur with or set aside the secretary’s recommendations, and has the authority to “adjust the imports of an article and its derivatives” or other non-trade-related actions as deemed necessary, according to the Commerce Department.
“With a new Class 8 truck costing an average of $170,000 (likely higher in 2025), a 25% tariff applied to all new trucks from Mexico would increase the retail price to $200,000,” ATA said. “This means that trucking companies would have to pay the 12% [federal excise tax] on the post-tariff price of $200,000, not $170,000. That brings the total price of a new truck, on average, to $224,000, which is simply cost prohibitive for the vast majority of trucking companies.”
ATA also touted the safety benefits of getting more new trucks on the road.
“Newer trucks are equipped with more advanced safety technology, such as anti-lock braking systems, advanced emergency braking, forward collision warning and electronic stability control, which makes them safer to drive and helps avoid accidents,” it said. “Therefore, we strongly encourage the Department of Commerce to not implement new tariffs on heavy-duty trucks and parts.”
At press time, the Commerce Department had not yet published the more than 3,000 comments it has received on the proposed Section 232 investigation.
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