What Plumbing Contractors Should Know About Possible Work Truck Tariffs

As of February 12, 2025, when this article was written, US President Donald J. Trump has delayed tariffs on imports from Mexico and Canada. On February 3, 2025, Trump agreed to a 30-day tariff pause in exchange for concessions on border and crime enforcement with both countries. If these tariffs take effect on March 6, 2025, a 25% tariff will be imposed on all articles imported from Mexico and Canada. These nations have enjoyed duty-free trade with the US under the United States-Mexico-Canada Agreement (USMCA), apart from Canadian energy resources, which will face a 10% tariff.

Additionally, a 10% tariff on Chinese imports went into effect on February 4, 2025. This tariff is imposed on top of previous tariffs under the Trade Act of 1974, Section 301, which were enacted during both the Trump and Biden administrations.

According to The White House Fact Sheet, President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China, tariffs are a powerful, proven source of leverage for protecting the national interest, and President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and US national security first.

However, these tariffs will affect the U.S. consumer. The cost of housing, food, energy, and what we will focus on in this article—commercial work vehicles contractors hold near and dear to their businesses—will likely increase.

How Tariffs Affect US Auto Manufacturers and Suppliers

According to the article, Trump tariff drama carries high stakes for US automakers, the uncertainty over Trump's tariffs has left the automotive industry unable to take action to mitigate potential damage, because of possible regulatory change. The Big Three car manufacturers in Detroit are the most exposed to these tariffs. Stellantis manufactures 39% of its North American vehicles in Mexico or Canada; GM manufactures 36% in those two countries; and Ford Motor manufactures 18% of its vehicles across these two boarders.

The origin of a vehicle plays a significant role in the impact of these tariffs, but so do the origin of the components that make up the vehicle. Usually, US-made vehicles include parts sourced from Canada and Mexico. Approximately $200 billion worth of auto components are made in Mexico and shipped to US assembly plants and repair facilities, as reported by Cox Automotive in Will Trump Make the Auto Industry Great Again?

According to S&P Global Mobility, these tariffs would have a massive impact on the auto industry, including component suppliers. It is also expected that Canada and Mexico will respond with tariffs of their own, either equal to or “representative” of those imposed. While the specifics of this possible retaliation are unclear, the situation could become more complicated if Canada and Mexico introduce tariffs on automotive components imported from the US and used in their assembly processes.

S&P Global Mobility notes that from a trade standpoint, the tariffs are expected to lead to early adjustments in the USMCA trade agreement, potentially making the terms more favorable for the US. The agreement is set for review in July 2026.

Purchasing Tips Amid Tarriff Uncertainty

If you plan to purchase a work truck in 2025, it may be wise to act now. Trucks currently on dealer lots will not be affected by the possible tariffs, but new imported trucks and SUVs could see price hikes if the tariffs take hold. Plus, automakers may raise prices across the board to cover the import fees without significantly inflating the cost of any one specific vehicle.

You may also want to consider purchasing a work truck made in the US. A helpful resource for this is the American Automobile Labelling Act, which provides an annual report showing what percentage of each vehicle is made with US/Canadian parts. This report also details the country of origin for the engine, transmission and final assembly.

Based on the most recent report, trucks made in the US include:

• Ford F-150
• Ford F-150 EV
• Ford Ranger
• Chevy Silverado / Sierra EV
• Honda Ridgeline AWD
• Nissan Frontier
• Toyota Tundra
• Toyota Tundra Hybrid

Other work trucks and vans manufactured in the US, but not included in the Labeling Act, include: 

•    Chevrolet Express and Savana vans, made at the GM Wentzville, Missouri, plant.

•    Ford Transit vans, made at several locations around the world, including the U.S.

•    Every fifth-generation Ram 1500 is made in Sterling Heights, Michigan.

When shopping for a work truck, an easy way to determine its origin is by checking the Vehicle Identification Number (VIN). The World Manufacturer Identifier (WMI) is the first three digits of the VIN and reveals the vehicle's country of origin. Vehicles with a VIN beginning with 1, 4, or 5 were made in the US, while a VIN beginning with 2 indicates Canada and 3 indicates Mexico.

Purchasing a used truck is another option, though prices will be influenced by market demand. According to Kelly Blue Book, an increase in new car prices typically drives up the cost of used cars. Even before potential tariffs take effect, the price of the average used vehicle is already rising.