By David Shepardson
WASHINGTON (Reuters) -The U.S. Commerce Department said on Wednesday it is opening a probe into national security impacts of imports of medium-duty and heavy-duty trucks and related parts into the United States.
The "Section 232" investigation could form the basis of grounds to impose new tariffs on work trucks, buses, vans and other larger vehicles.
Tariffs would hurt Mexico, as it is the largest exporter of medium- and heavy-duty trucks to the United States. A study released in January said imports of those larger vehicles from Mexico have tripled since 2019.
Canada and Japan are also large exporters of larger trucks to the United States.
The Commerce Department is seeking public comment by mid-May on the extent to which domestic production of trucks and truck parts can meet domestic demand and the concentration of U.S. imports of trucks and truck parts from a small number of suppliers. It also wants comments on the impacts on prices "due to foreign unfair trade practices and state-sponsored overproduction".
U.S. President Donald Trump earlier this month imposed 25% tariffs on light-duty vehicles and said he planned to impose tariffs of 25% on imported auto parts no later than May 3. The auto industry on Tuesday urged him to abandon the planned tariffs on auto parts.
Higher tariffs on commercial vehicles could put pressure on transportation costs just as Trump has vowed to reduce inflation especially on consumer goods like groceries.
Tariffs could also affect Chrysler-parent Stellantis (NYSE: STLA ), which produces heavy-duty Ram trucks and commercial vans in Mexico. Sweden’s Volvo (OTC: VLVLY ) Group is building a $700-million heavy-truck factory in Monterrey, Mexico, due to start operations in 2026.
Mexico is home to 14 manufacturers and assemblers of buses, trucks, and tractor trucks, and two manufacturers of engines, according to the U.S. International Trade Administration.
The country is also the leading global exporter of tractor trucks, 95% of which are destined for the United States.