PACCAR and other U.S. heavy-duty truck manufacturers are exploring options to source more components from Mexico in response to increased manufacturing costs driven by Trump administration tariffs. The U.S. heavy-duty truck industry, valued at $50 billion, faces 50% tariffs on imported steel, aluminum, and copper derivatives under Section 232 of the Trade Expansion Act.
PACCAR, based in Bellevue, Washington, is directly impacted by tariffs on non-USMCA-compliant imported parts, which are raising its input costs. This pressure is prompting companies to re-evaluate their supply chain strategies to leverage concessions available under the US-Mexico-Canada Agreement (USMCA).
The potential shift in sourcing highlights the significant influence of trade policies on manufacturing operations and profitability within the truck industry. Such strategic adjustments could lead to changes in production networks and cost structures for PACCAR.
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