Section 232 truck tariffs allow the United States to compete with Mexico, PACCAR said.
According to the company’s own data, its Peterbilt and Kenworth trucks account for more than 30% of the US heavy-duty truck market and transport more than 20% of the nation’s freight daily.
Section 232 truck tariffs
Kenworth and Peterbilt manufacture other work vehicles, whether for road and pipeline construction, energy production, mining operations, or municipal services.
As a result of President Donald Trump’s Section 232 truck tariffs and the Department of Commerce’s tariff structure and compensation program, PACCAR has made additional investments in US plants and now builds more than 99% of its medium- and heavy-duty trucks and 100% of its engines for the US at our world-class factories in Texas, Ohio, Mississippi, Washington, and Kentucky.
“The Section 232 truck tariffs allow PACCAR to restore and offer additional high-quality manufacturing jobs in the United States as we invest in our U.S. truck and engine factories, without being at a competitive disadvantage to foreign companies that have moved truck assembly to Mexico,” the company said.
Net exports
The number of Class 8 trucks produced in the United States decreased significantly between 2019, the year before the USMCA came into effect, and 2023.
For the company, this reflects a shift in truck production by its foreign competitors to Mexico.
“When U.S. production exceeds registrations in that country, as in the case of PACCAR and our Peterbilt and Kenworth truck divisions, this generally indicates net exports to the United States,” he added.
These statements were included in a letter sent on December 7 by PACCAR to the U.S. Trade Representative (USTR) as part of a consultation process on the operation of the USMCA.
PACCAR has a 121-year history of proud manufacturing in the United States. We began by manufacturing railroad cars for the Pacific Northwest lumber industry and manufactured Sherman tanks during World War II before entering the truck market in 1945.
PACCAR is the only U.S. manufacturer of high-volume medium- and heavy-duty trucks.