Trump’s 10% Tariff on Buses Could Raise Transit Costs Across North America

A Trump-imposed 10 percent tariff on buses could raise transit costs across the continent as transit agencies are forced to spend more on new vehicles, according to an article in Straight Arrow News. “There’s no wiggle room, no exceptions for compliance with trade agreements or Buy America policies, and no carve-outs, as there are with the new truck tariffs,” the article explains.

“The tariff primarily impacts Canada’s bus sector, which has already been hit hard by Trump’s new tariffs on steel and aluminum. Buses and bus components frequently cross the U.S.-Canada border during production, meaning that costs must account for much more than just the new 10% fee.” However, the tariff will likely impact struggling transit systems in the United States as well.

As an article for CTV News notes, “Although it will take a while for the costs to filter down to Canadians, she said, cities desperate to source enough buses for their fleets will find themselves able to purchase even fewer than they’d hoped as the prices of vehicles and parts rise, and as production runs shrink.” Agencies may also have to delay the purchase of cleaner fleets.