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Trump probing if foreign nations can 'weaponize their control' over supplies of trucks and parts

The investigation will evaluate whether domestic manufacturers can meet US demand, and whether foreign nations could exploit their control over truck and parts supplies through export restrictions.

April 24, 2025 / 08:24 IST
The US Commerce Department’s focus on 'predatory trade practices' assesses concerns about low-cost goods flooding its domestic markets, a large part of which comes from China.
     
     
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    The Trump administration has on April 24 initiated an investigation to weigh the need for tariffs on imports of medium and heavy-duty trucks and their components, a move that expands the ongoing trade war.

    The Commerce Department, through the probe, is looking to explore the extent to which domestic production of trucks and truck parts can meet American demand. The investigation will assess 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 public inspection, which has begun on April 22 and cited in the US Federal Register notice, aims to assess national security risks posed by a limited group of foreign suppliers that are allegedly benefiting from US subsidies and unfair trade practices, and dominate the US imports of these items.

    "On April 22, 2025, the Secretary of Commerce initiated an investigation under Section 232 (19 U.S.C. 1862) 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," the US Federal Register notice said.

    As per the investigation, the term 'medium-duty trucks' implies trucks with a gross vehicle weight between 10,000-26,001 pounds, while 'heavy-duty trucks' are those with a gross vehicle weight of over 26,001 pounds.

    India's Bharat Forge is among the leading supplier of Class 8 trucks to America, with 20 percent of its exports headed to the US markets. The US Commerce Department’s focus on 'predatory trade practices' assesses concerns about low-cost goods flooding its domestic markets, a large part of which comes from China.

    The investigation will evaluate whether domestic manufacturers can meet US demand, and whether foreign nations could exploit their control over truck and parts supplies through export restrictions.

    The investigation is also aimed at finding out the role of foreign supply chains in meeting America's demand for trucks and truck parts, how concentrated is its import from a small number of suppliers and the risks associated with it.

    The probe will explore how much subsidies by foreign government and predatory trade practices have impacted the competitiveness of the medium and heavy-duty truck industry in America.

    The investigation could result in additional tariffs on imported trucks or components, which may make commercial shipping costlier.

    President Trump has already imposed a 25% tariff on automobile imports and duties on car, light truck parts, which are set to kick in from May 3.

    Moneycontrol News
    first published: Apr 24, 2025 06:55 am

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