In a significant development that shakes the automotive and transportation logistics sectors, the U.S. has announced sweeping changes to import duties on medium- and heavy-duty trucks, buses and associated parts. According to the recent proclamation published by the White House on 17 October 2025, these new tariffs will come into effect from 1 November 2025 and are expected to reverberate across global supply chains. 

For companies like Green Dragon International Logistics, LLC, which specialize in cross-border logistics between Southeast Asia and the U.S., understanding these shifts is critical—not only for importers of vehicles, but for any business engaged in industrial goods, parts, and transportation equipment.

1. Key Changes in the New Tariff Regime

The core elements of the announcement are as follows:

  • A 25 % tariff will be applied to imports of medium and heavy-duty trucks coming into the U.S.
  • A 10 % duty will be levied on buses, including school buses, transit models and motor coaches.
  • Under the United States–Mexico–Canada Agreement (USMCA), trucks that qualify for local content rules will only face a tariff on the portion of value derived from non-U.S.-origin content
  • Vehicles that do not meet USMCA region-of-origin criteria will be taxed at the full 25 % rate. 

These changes mark a decisive move by the U.S. government to protect domestic manufacturing and reshape automotive supply chain flows.

2. Why This Matters: Broader Supply Chain Implications

2.1 Elevated Cost Pressure

With a 25 % tariff on heavy trucks, the landed cost of such imports into the U.S. will increase significantly. Manufacturers, importers and logistics providers must plan for this surge. Green Dragon International Logistics, LLC has already begun advising clients with vehicle-related shipments to factor in the new duty levels and explore route alternatives.

2.2 Sourcing and Manufacturing Re-Evaluation

Parts and components that feed into the heavy-vehicle market will see cost escalation. Companies may reconsider sourcing from countries with lower tariffs or ramp up local U.S. content to avoid full duties—USMCA-compliant sourcing becomes more attractive.

2.3 Logistics and Routing Adjustments

Reduced import demand may lead shipping lines and carriers to adjust services, which could increase freight rates or alter schedules. Forwarders like Green Dragon are evaluating how to redirect freight from higher-tariff lanes to more cost-efficient channels.

2.4 Strategic Shift: Near-shoring & Diversification

The tariff change reinforces the urgency of the “China Plus One” strategy, or even “Americas Plus” near-shoring. Southeast Asia, including Vietnam, becomes more prominent as manufacturing/export hubs for goods destined for the U.S. market.

3. Specific Implications for Southeast Asia – Including Vietnam

3.1 Manufacturing and Exporters

For Vietnam-based manufacturers and exporters, the tariff shift creates both risk and opportunity. On one hand, companies supplying heavy-duty trucks or large transportation equipment to the U.S. must face the 25 % duty. On the other hand, it puts Vietnamese suppliers of parts, modules or finished goods in a stronger position as companies avoid higher-tariff markets.

3.2 Logistics Service Providers

Green Dragon International Logistics, LLC, with its regional footprint in Vietnam, Cambodia and the U.S., is uniquely placed to help firms restructure supply chains. For example, consolidation of parts in Vietnam and final assembly or shipping to the U.S. under USMCA-compliant routes may reduce duty exposure.

3.3 Freight Forwarding Strategy

Exporters using U.S. import channels must now scrutinize shipments of trucks, buses and large vehicle parts. Logistics providers must re-check HS codes, origin certificates and USMCA eligibility. Green Dragon’s customs & trade-compliance team is already assisting clients to audit shipments and calculate full duty cost scenarios.

4. Strategic Recommendations from Green Dragon International Logistics, LLC

4.1 Review Origin & Content Rules

Manufacturers and importers should immediately assess whether their vehicles or parts qualify under USMCA. Anything outside the local content threshold will trigger the full tariff exposure.

4.2 Negotiate Terms and Passage

Early engagement with carriers and logistics partners is essential. Tariff-related costs must be factored into contracts, freight rates and landed-cost models. Green Dragon advises clients to request detailed duty impact modelling and route-alternatives.

4.3 Explore Alternative Manufacturing Regions

To mitigate exposure, companies should consider shifting production or sourcing to regions with favorable trade agreements or lower tariff risk. Southeast Asia, including Vietnam, offers manufacturing cost-advantages and lesser tariff barriers for U.S. bound exports.

4.4 Optimize Logistics Flow & Inventory

With potential shifts in shipping volumes, freight rates and port congestion, it’s prudent to review inventory policies. Consolidation, cross-docking, multi-modal transport (sea + rail + road) and warehousing near U.S. entry points can provide cost and service advantages. Green Dragon’s network across Vietnam–U.S.–Cambodia offers clients such flexible solutions.

4.5 Stay Updated on Trade Policy

Given the rapidly evolving trade landscape, companies must monitor announcements, legal challenges and negotiation outcomes. Green Dragon maintains a dedicated trade-policy alert service for clients to keep ahead of changes.

5. Outlook: What to Expect in 2026-27

The immediate effect of the tariff hikes will likely be increased landed cost and slower import volumes of heavy vehicles. Over time, however, the landscape may evolve:

  • Manufacturing bases will gravitate towards tariff-friendly jurisdictions, increasing usage of Southeast Asian hubs.
  • Carriers and forwarders will adjust routing and service portfolios, potentially reducing deep-sea service frequency.
  • Companies that proactively adjust sourcing and logistics strategies will gain a competitive edge.

Green Dragon International Logistics, LLC anticipates that firms which integrate supply-chain resilience—rather than merely cost-cutting—will thrive in this new era of trade complexity.

6. Conclusion

The U.S.’s new 25 % tariff on heavy and medium-duty trucks, and 10 % on buses, is more than a regulatory tweak—it signals a tectonic shift in global industrial trade and logistics. For exporters, forwarders and logistics firms, the mandate is clear: adapt or risk margin erosion.

With its presence at the nexus of Southeast Asia and the U.S., Green Dragon International Logistics, LLC is well-positioned to help clients navigate this evolving terrain—offering strategy, compliance, logistics optimisation and supply-chain diversification.

In short: the companies who act early, align manufacturing and logistics strategically, and partner with integrated providers like Green Dragon will be ahead of the curve.