*

Trump imposing 25% tariffs on all medium, heavy duty

trucks,

parts

*

Commerce also imposing 10% tariffs on imported buses

*

Expanded credits could provide help to automakers building

in

the U.S.

(Adds more details, background in paragraphs 2, 4-15)

By David Shepardson

WASHINGTON, Oct 17 (Reuters) - U.S. President Donald

Trump on Friday signed orders expanding credits for U.S. auto

and engine production and setting new 25% tariffs on imported

medium- and heavy-duty trucks and parts starting November 1.

The tariffs, which the orders say are being made on national

security grounds, are aimed at shifting more auto production to

the United States but could be a significant blow to Mexico,

which is the largest exporter of medium- and heavy-duty trucks

to the United States.

Trump is also setting a 10% tariff on imported buses.

Trump's order makes automakers eligible for a credit equal

to 3.75% of the suggested retail price for U.S. assembled

vehicles through 2030 to offset import tariffs on parts.

He is also extending the 3.75% credit for U.S. engine

production and for U.S. medium- and heavy-duty truck production.

The new tariffs cover all Class 3 through Class 8 trucks,

including large pick-up trucks, moving trucks, cargo trucks,

dump trucks, and tractors for 18-wheelers.

Trump last month said the tariffs were to protect

manufacturers from "unfair outside competition" and the move

would benefit companies such as Paccar ( PCAR )-owned Peterbilt

and Kenworth and Daimler Truck-owned Freightliner.

The U.S. Chamber of Commerce earlier urged Trump not to

impose new truck tariffs, noting the top five import sources are

Mexico, Canada, Japan, Germany, and Finland "all of which are

allies or close partners of the United States posing no threat

to U.S. national security."

Reuters first reported the details of the auto tariff action

on October 3.

The order provides GM, Ford, Toyota Motor,

Stellantis ( STLA ), Honda ( HMC ), Tesla, and other

automakers with financial relief against tariffs paid on

imported auto parts that were previously imposed by the Trump

administration.

The Commerce Department said in June it planned an

import adjustment offset equal to 3.75% of the suggested retail

price for eligible U.S. assembled vehicles through April 2026

and then a second year at 2.5% to address tariffs from imported

automobile parts.

The revised credit expands it to five years, keeps it at

3.75% throughout and extends it to more parts, which makes it

more valuable for automakers and could give companies more

incentive to shift production, Republican Senator Bernie Moreno

said.

Ford CEO Jim Farley said Trump's order would help make

auto parts affordable for U.S. production and the new import

tariffs on larger trucks would help level the playing field with

imports.

In May, Trump imposed 25% auto tariffs on more than $460

billion worth of imports of vehicles and auto parts annually,

but has since struck deals to reduce those tariffs on some

countries including Japan, the United Kingdom and the European

Union.

The Commerce Department said in August it was hiking

steel and aluminum tariffs on more than 400 products including

numerous auto parts totaling $240 billion in annual imports. The

parts include automotive exhaust systems and steel needed for

electric vehicles as well as components for buses.

GM said earlier this year the company will face up to $5

billion in gross tariff-related costs this year, while Ford

cited a $3 billion gross hit.