According to the Reuters report, the 232 divided on imported steel, aluminum and copper raises manufacturing costs for the hard truck industry in the United States worth $ 50 billion, leading to a strategic shift towards obtaining more components of Mexico. The data from the IndexBox platform also illuminates market dynamics, showing that the hard truck market in the United States is of $ 51.56 billion and is expected to grow to $ 71.81 billion by 2030.
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Manufacturers that produce trucks in the United States face a major defect in the cost. Bernstein’s analysis indicates that the customs tariff for imported ingredients places trucks collected in the United States by 3 % of the cost compared to the models compatible with USMCA created in Mexico. This is reflected in the market, where CASCADIA CASCADIA is about $ 165,000, especially less than $ 195,000 for the similar Kenworth T680 for Paccar. ACT research is estimated by these definitions adds 2 % to 4 % to the costs of each unit.
The USMCA trade agreement, which allows the movement of goods exempt from the fees to meet specific regional content rules, is essential in this transformation. Competitors such as Daimler Truck and Tratun avoid these fees through manufacturing in Mexico, and acquire the structural cost feature. On the other hand, companies with a larger American manufacturing fingerprint, such as Paccar, are facing higher expenses; The company estimated 75 million dollars of customs tariffs for the third quarter alone. Paccar signs of the market share of 30.4 % in the first half of 2025, while Daimler reported the total margin in the first quarter of 21.96 % compared to 18.69 % of Paccar.
In response, manufacturers increase investments in Mexico. Volvo has strengthened its planned investments in a Mexican factory by 300 million dollars to a total of one billion dollars to support its American operations. Paccar CEO has stated that the company is working with suppliers to increase imports of the approved parts of USMCA to reduce exposure to long -term tariffs. The industry also faces wider challenges, with ACT research predictions at a decline of 11 % on an annual basis in 2026 to 226,600 units due to economic opposite winds.
The structure of the cost of manufacturing trucks emphasizes the effect of these definitions, where raw materials, components, and final components constitute approximately 85 % of the total cost of building a truck. A possible new layer of complexity is the US Trade Department probe 232 that started in April, which may lead to a new tariff or exemptions on medium and heavy trucks and parts, which may increase the formation of the dynamics of the cost of industry.
Source: Indexbox Market Intelligence
