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Feds launch probe of truck imports’ effect on truck prices, national security

Department of Commerce looking into national security effects and implications for domestic truck makers

John Gallagher
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Trump administration investigating foreign influence on the U.S. truck market. (Photo: Jim Allen/FreightWaves)
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Key Takeaways:

  • The Trump administration initiated an investigation into the national security implications of foreign imports of medium- and heavy-duty trucks and parts.
  • The investigation will examine the impact of foreign imports on domestic truck prices and the ability of US manufacturers to meet domestic demand.
  • Areas of focus include foreign supply chain reliance, unfair trade practices, and the potential for foreign nations to weaponize truck and part exports.
  • The investigation will consider whether tariffs or quotas are necessary to protect US national security interests.
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WASHINGTON — The Trump administration is launching an investigation to determine the effects that foreign imports of medium- and heavy-duty trucks and truck parts are having on truck prices in the U.S.

In a notice published Wednesday, the Commerce Department announced it had initiated the investigation on Tuesday “to determine the effects on national security of imports of medium-duty trucks, heavy-duty trucks, and medium- and heavy-duty truck parts, and their derivatives.”

Medium-duty trucks have a gross vehicle weight (GVW) of more than 10,000 and under 26,001 pounds, and heavy-duty trucks are those with a GVW of 26,001 pounds or more.

Truck parts, for the purposes of the investigation, refers to individual components and systems, including engines and engine parts, transmissions and powertrain parts, and electrical components.

After the notice is published in the Federal Register, scheduled for Friday, the department is giving the public 21 days to comment on the investigation.

The Trump administration is particularly interested in:

  • Current and projected demand for trucks and truck parts in the U.S.
  • The extent to which domestic production of trucks and truck parts can meet domestic demand.
  • The role of foreign supply chains, particularly of major exporters, in meeting U.S. demand for trucks and truck parts.
  • The concentration of U.S. imports of trucks and truck parts from a small number of suppliers and the associated risks.
  • The impact of foreign government subsidies and predatory trade practices on the competitiveness of the medium- and heavy-duty truck industry in the U.S.
  • The economic impact of artificially suppressed prices of trucks and truck parts due to foreign unfair trade practices and state-sponsored overproduction.
  • The potential for export restrictions by foreign nations, including the ability of foreign nations to weaponize their control over supplies of trucks and truck parts.
  • The feasibility of increasing domestic capacity for trucks and truck parts to reduce import reliance.
  • The impact of current trade policies on domestic production of trucks and truck parts, and whether additional measures, including tariffs or quotas, are necessary to protect national security.

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John Gallagher

Based in Washington, D.C., John specializes in regulation and legislation affecting all sectors of freight transportation. He has covered rail, trucking and maritime issues since 1993 for a variety of publications based in the U.S. and the U.K. John began business reporting in 1993 at Broadcasting & Cable Magazine. He graduated from Florida State University majoring in English and business.