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t,n=e.getConfig(),o={ybar:document.getElementById("ybar"),searchInput:document.getElementById("ybar-sbq"),buttonBar:document.querySelector(".".concat(jt["sa-btn-bar"])),searchForm:document.getElementById("ybar-sf"),searchBoxIcon:document.querySelector(".".concat(jt["searchbox-icon-uh3"])),searchBoxPlaceholder:document.getElementById("ybar-smartphone-searchbox-placeholder"),searchBoxBackButton:document.getElementById("ybar-search-back-btn"),shopsButtonsWrap:document.querySelector(".".concat(jt["shops-buttons"])),categorySelect:document.getElementById("shops-category-select"),selectedMerchantInput:document.getElementById("selected-merchant-input"),selectedMerchantClearButton:document.querySelector(".".concat(jt["selected-merchant-clear-button"])),submitSearchBtn:document.getElementById("ybar-search"),clearSearchBtn:document.getElementById("ybar-sbq-x"),searchGradientBorder:document.querySelector(".".concat(jt["search-border-gradient"]))};if(function(e,t){var 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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Abhinav ParmarTue, Aug 26, 2025, 4:20 PM 3 min readBy Abhinav Parmar(Reuters) -The Trump administration's tariffs have raised manufacturing costs for the $50 billion U.S. heavy-duty truck industry, prompting companies to consider sourcing more components from Mexico to benefit from concessions under the US-Mexico-Canada Agreement (USMCA).U.S. truck manufacturers currently face 50% tariffs on imported steel, aluminum and copper derivatives under Section 232 of the Trade Expansion Act. In addition, manufacturers like Bellevue, Washington-based Paccar are hit with tariffs on every non-USMCA-compliant part they import.Rivals including Daimler Truck and Traton sidestep these levies by building in Mexico, giving them an edge on costs over companies that are manufacturing in the U.S.The USMCA pact allows goods to move duty-free between the U.S., Mexico and Canada, provided they meet certain regional sourcing rules. Under the pact, at least 64% of a heavy truck's value must originate in North America, via parts like engines and axles, raw materials such as steel or assembly labor. That threshold will rise to 70% in 2027.Sweden's Volvo and its subsidiary Mack Trucks produce their vehicles for the U.S. market domestically at their plants in Dublin, Virginia and Macungie, Pennsylvania, respectively."Trucks built in the U.S. are actually disadvantaged today compared to trucks built in Mexico," a spokesperson at Volvo's North American unit said.In April, the company boosted its planned Mexico plant investment by $300 million to $1 billion, aiming to support its U.S. operations.Tariffs on imported components put trucks assembled in the U.S. at a 3% cost premium compared with USMCA-compliant models built in Mexico, brokerage Bernstein said."Companies with a higher manufacturing footprint in the U.S. than in Mexico are at a relative cost disadvantage and this is the complete antithesis of what the Trump administration wants," said Chad Dillard, senior analyst, Bernstein.ACT Research forecast production to dip 11% year-on-year in 2026 to 226,600 units, with economic headwinds and weaker carrier profitability having hit the industry in 2025.Paccar, which sells trucks under the Kenworth and Peterbilt brands, estimates $75 million in tariff costs in the third quarter. The company said its brands held a 30.4% market share in the first half of 2025.Daimler's first-quarter gross margin of 21.96% was higher than Paccar's 18.69%.Paccar declined to comment for this story. 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