President Trump is following through on his threat to impose a 25% tariff on medium and heavy-duty trucks made outside of the U.S.
The order imposes a 25% tariff on truck parts and a 10% tariff on imported buses, such as city buses and school buses.
Mr. Trump signed the order aboard Air Force One en route to his Mar-a-Lago estate in Florida on Friday.
Senior administration officials said Mr. Trump wants to incentivize the manufacturing of trucks, buses and parts in the U.S.
The provisions include some exemptions for products that comply with the U.S.-Mexico-Canada Agreement.
The order includes an offset program, which lasts until 2030, that allows companies to reduce their tariff exposure on parts if they assemble the vehicles in the U.S.
Stocks for PACCAR, an American truck company with brands such as Kenworth and Peterbilt, rose when Mr. Trump proposed the levy in September.
However, the announcement could have negative implications for German truck makers such as Daimler Trucks and Traton. Those companies declined to comment to The Washington Times when the tariffs were initially floated, saying it was early and they wanted to digest the actual policy internally.
Tariffs are a duty on foreign goods when they are brought into U.S. markets.
Critics of Mr. Trump’s tariffs say the costs will be passed to consumers, but the administration says Americans will benefit from new jobs and other economic benefits in the White House agenda.
The truck tariffs stem from a national security investigation under a provision known as Section 232.
Use of Section 232 typically involves an investigation by the Department of Commerce secretary into whether imports threaten or impair national security.
The secretary reports to the president within 270 days of initiating the probe, and the president decides whether to adjust import levels or tariffs.
Mr. Trump is relying on national-security justifications to tax a series of imported materials, including steel, aluminum, copper, lumber, upholstered furniture, kitchen cabinets and heavy trucks.
Mr. Trump’s sector-specific tariffs are shielded from a Supreme Court case that is threatening a separate tranche of tariffs.
Blue states and import-reliant businesses say Mr. Trump overstepped when he invoked the International Emergency Economic Powers Act to impose reciprocal tariffs on individual nations and levies on Canada, Mexico and China over fentanyl trafficking.
The justices will hear oral arguments in the case on Nov. 5.
