The United Auto Workers (UAW) is urging U.S. Commerce Secretary Howard Lutnick to impose strict tariffs on imported medium- and heavy-duty trucks. Their goal: to pressure manufacturers into relocating production back to the United States.
In an August 29 letter, the union warned that America’s truck production “center of gravity” is shifting to Mexico. To stop that trend, the UAW is backing the use of Section 232 tariffs, a trade tool that allows the government to impose duties on imports deemed a threat to national security.
Why Section 232 Matters
– Established under the 1962 Trade Expansion Act
– Allows tariffs if foreign imports are considered harmful to U.S. security
– Already applied to steel and aluminum, driving up costs for truck makers
– Currently under review for trucks, parts, and other critical imports like semiconductors and copper
These tariffs can significantly raise production costs, which are often passed on to fleets and carriers.
Industry Pushback
Not everyone supports the UAW’s call for tougher trade measures. The American Trucking Associations (ATA) and the U.S. Chamber of Commerce have both spoken out against tariffs on trucks and parts.
Their concerns include:
- Higher prices for fleets, reducing already thin profit margins
- Reduced demand for trucks, especially during the current freight recession
- Uncertainty under USMCA (United States-Mexico-Canada Agreement), since most imports come from North American neighbors
ATA argues that Mexican production does not pose a national security risk, pointing out that trucks built in Mexico often include U.S.-made components like engines and transmissions. Under USMCA, Class 8 trucks must already contain 64% North American content, a number set to rise to 70% by 2027.
Who’s Building Where?
The U.S. heavy truck market is deeply tied to Mexico:
– Daimler Truck North America operates two plants (Saltillo and Santiago Tianguistenco).
– International Motors (Traton Group) builds its full Class 8 lineup in Escobedo.
– Paccar’s Peterbilt unit manufactures in Mexicali.
– Volvo Group is planning a 1.7 million-square-foot plant in Mexico, sparking fresh criticism from the UAW.
Currently, Volvo/Mack is the only major OEM without an operational Mexican assembly plant.
The Market Picture
Class 8 truck demand is already weak, with August orders down 19% year-over-year (13,200 units).
Manufacturers like DTNA, Volvo, and International have already cut jobs due to the freight recession.
Imports currently make up over 40% of U.S. Class 8 sales, according to the UAW.
UAW’s Argument
The UAW represents about 19,000 U.S. workers in the truck and bus manufacturing sector. Its message is clear: without tariffs, more jobs and production will leave the U.S.
The union accuses truck makers of prioritizing shareholder returns and stock buybacks over American workers. In its letter, UAW President Shawn Fain stated: “Unless heavy truck manufacturers are forced to pay a price for moving production to low-wage countries, a continued loss of domestic jobs, skills, and industrial capacity is sure to follow.”
The union insists tariffs are the only effective tool to:
- Protect American jobs
- Prevent a full shift of truck production to Mexico
- Strengthen national security
What’s Next?
The Commerce Department has 270 days to complete its investigation into imported trucks, with a decision expected by January 17, 2026.
Until then, the industry faces uncertainty over costs, supply chains, and long-term investment decisions.
Tariffs = Higher Prices: If approved, expect higher costs for new trucks and parts.
Supply Chain Shifts: OEMs may rethink where they build trucks, possibly reshoring to the U.S.
Short-Term Pain, Long-Term Debate: While tariffs could protect U.S. jobs, they risk reducing demand in an already soft freight market.
Whether you’re a small fleet or a large carrier, this decision could directly affect truck availability, pricing, and long-term operational costs. Staying informed will help you plan equipment purchases and prepare for possible market shifts.
