The $50 billion US truck industry is facing financial strain due to steep tariffs on raw materials under Section 232 of the Trade Expansion Act. Manufacturers are seeking cost advantages by relocating sourcing and assembly to Mexico, leveraging the benefits offered under the USMCA (United States-Mexico-Canada Agreement). This shift has left U.S.-based truckmakers with a significant disadvantage due to high tariffs on imported steel, aluminum, and copper derivatives. 64% of the value must come from North America for heavy trucks under the USMCA. Companies like Daimler Truck and Traton are consolidating production in Mexico to minimize tariff impact and gain a competitive edge in the U.S. market.