Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses Into the United States
1. Purpose
Proclamation 10984 aims to enhance national security by adjusting tariffs on medium- and heavy-duty vehicles (MHDVs), vehicle parts (MHDVPs), and buses, based on findings that these imports threaten national security.
2. Key Actions And Directives
- Adjustment of Tariffs on MHDVs and Buses: Implement a 25% ad valorem duty on MHDVs and key MHDVPs, and a 10% duty on buses.
- Modify HTSUS: Modify the Harmonized Tariff Schedule of the United States (HTSUS) to establish new tariff rates and import processes.
- Import Adjustment Offset for U.S. Manufacturers: Allow MHDV manufacturers to apply for a 3.75% import adjustment offset based on the value of domestic MHDVs assembled.
- Monitoring of Future Imports: The Secretary of Commerce will continuously monitor MHDVs and MHDVPs imports and report on necessary adjustments.
3. Important Points
- Critical Role of MHDVs in National Security: MHDVs are essential for military readiness, emergency response, and economic stability.
- Historical Decline in U.S. MHDV Manufacturing: The U.S. was a leader in MHDV manufacturing until significant import penetration occurred, particularly in Class 8 vehicles.
- Vulnerabilities in Supply Chain: Reliance on foreign suppliers for MHDVPs creates vulnerabilities that could affect national defense.
- Overlap in Auto and MHDV Parts Supply Chains: Acknowledge the shared supply chain between the automobile and MHDV industries for tariff consistency.
- USMCA Preferential Treatment Requirements: MHDVs and MHDVPs must meet U.S. content requirements to qualify for reduced tariffs under the USMCA.
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