US expands auto-parts tariff offsets to medium/heavy-duty vehicles
The US International Trade Administration amended procedures for administering import adjustment offset amounts under Presidential Proclamation 10984 (October 17, 2025), extending tariff-offset incentives to medium- and heavy-duty vehicle (MHDV) manufacturers. Previously limited to light-duty automobiles under Proclamation 10925 (April 29, 2025), the updated rules now allow domestic MHDV producers to claim offsets for imports of MHDV parts and automobile parts, provided they meet minimum domestic-production thresholds. The notice, published May 15, 2026, replaces earlier guidance and excludes certain limited-production operations from offset calculations. Future amendments will establish equivalent processes for engine manufacturers.
Photo: Tahamie Farooqui / Pexels# US Expands Auto-Parts Tariff Offsets to Medium- and Heavy-Duty Vehicles
On May 15, 2026, the US International Trade Administration published amended procedures for administering import adjustment offset amounts for automobile and medium- and heavy-duty vehicle (MHDV) parts under Presidential Proclamation 10908 and subsequent proclamations, expanding tariff relief to a broader set of domestic manufacturers.
Background
In June 2025, the ITA established initial procedures under Presidential Proclamation 10925 (April 29, 2025) to allow automobile manufacturers to claim import adjustment offset amounts—effectively tariff credits—for qualifying imports of automobile parts. The offset program was designed to incentivize domestic automobile production and reduce reliance on foreign imports. This framework has now been extended following Presidential Proclamation 10984 (October 17, 2025), which amended the scope to include medium- and heavy-duty vehicles and their parts.
Who is Affected
The amended procedures apply to:
- Domestic manufacturers of medium- and heavy-duty vehicles (MHDVs) — now eligible to claim import adjustment offsets for imports of MHDV parts (MHDVPs) and automobile parts
- Light-duty automobile manufacturers — continue to access offsets under the original framework
- Bus manufacturers — covered under the amended proclamation scope
The procedures exclude certain heavy-duty vehicle assembly operations determined to be "limited production operations" from offset calculations. The ITA notes that equivalent exclusions for automobiles and medium-duty vehicles will be established by amendment at a later date.
How the Offset Works
Manufacturers must apply for and document their import adjustment offset amounts in accordance with the ITA's procedures. The offset amount is determined by a manufacturer's domestic production of qualifying vehicles and parts. Imports of qualifying parts—whether automobile or MHDV—can be offset against tariff obligations, provided the importer meets minimum domestic-production thresholds established under the proclamations.
The notice confirms that the offset process will be amended to establish an equivalent framework for domestic manufacturers of automobile engines and MHDV engines, as specified in Proclamation 10984.
What this means for shippers
MHDV parts importers must now verify whether their domestic customers—truck, bus, and heavy-equipment manufacturers—qualify as offset-eligible under the new rules. Coordinate with your supplier-customers immediately to determine their proclamation-eligible production footprint and offset-claim status; failure to identify available offsets increases effective landed cost. Flag any MHDV parts (HS 8704, 8705, 8708 subsets) and engine imports (HS 8406, 8407) in your compliance workflows, as the engine offset procedures are still pending. Review /landed-cost to recalculate duty exposure for affected shipments.
