Class 8 Truck Orders

Dan Moyer, senior analyst, commercial vehicles, commented, “Significant U.S. tariffs could substantially increase costs for North American Class 8 trucks/tractors and related components. Approximately 45% of all Class 8 trucks built for the U.S. and Canadian markets will be subject to the 25% U.S. tariff on all imports from Canada and Mexico and planned Canadian counter tariffs. About 40% of U.S. Class 8 trucks are produced in Mexico, and roughly 65% of Canada’s Class 8 trucks are assembled in the U.S. Even if those tariffs went away, others affecting costs include those on steel and aluminum, goods imported from China, and perhaps others coming down the pike.”

“Combined with upcoming U.S. EPA 2027 NOx regulations, tariffs may significantly disrupt fleet replacement cycles – either accelerating investments to avoid future price hikes or delaying purchases amid growing uncertainty. Based on February orders, the latter approach apparently is the dominant path so far. OEMs and suppliers may consider shifting production to manage tariff exposure. However, these strategic changes remain costly, complex, and time-intensive, further complicating industry planning.”