Tariff on Heavy Vehicles Sparks Dispute in Detroit

The initiative to impose 25% tariffs on heavy truck imports has sparked a dispute between Detroit's three major automakers, with one of them's assembly operations in Mexico at the center of the dispute. This is according to a Bloomberg report (subscription required).

Sources consulted by the U.S. media outlet indicate that, on the one hand, Ford and General Motors are lobbying the Trump administration to apply the measure without exceptions, while Stellantis is lobbying for concessions for the vehicles in that segment that it produces in Saltillo, Coahuila.

Representatives of the oval brand claim that the special treatment for its rival puts the medium- and heavy-duty pickups it produces in the United States, whose components are subject to tariffs, at a cost disadvantage.

For its part, GM argues that if Stellantis obtains some kind of protection, other automakers should also receive special treatment for the models they produce in Mexico, the report notes.

Of the three manufacturers, Stellantis is the only one that produces medium- and heavy-duty trucks in Mexico. GM manufactures these pickups in the United States and Canada, while Ford produces 100% of these vehicles “at home.”

However, each of these units is equipped with an engine produced in Chihuahua or Windsor, Ontario, which are subject to tariffs.

At the end of September, the White House announced its intention to impose these trade barriers on imports of medium- and heavy-duty vehicles weighing more than 10,000 pounds, which would take effect on October 1.

However, the date arrived without the tariffs being applied, and everything indicates that the dispute between the Big Three in Detroit is part of the reason.