U.S. tariffs on buses and trucks threaten North American transit, Canadian jobs and zero-emission goals

TORONTO, Oct. 23, 2025 /CNW/ - The Canadian Urban Transit Research & Innovation Consortium (CUTRIC) warns newly announced U.S. tariffs on imported buses, trucks, and parts will drive up costs for Canadian and American transit systems, disrupt the integrated North American manufacturing supply chain, and jeopardize Canada's progress toward zero-emission public transit.

Effective November 1, new U.S. tariffs will impose a 10 per cent levy on imported buses and a 25 per cent tariff on medium and heavy-duty trucks and parts. CUTRIC believes the policy will have far-reaching and unintended consequences for both American and Canadian communities, manufacturers, and workers.

"These tariffs are not a surprise, but they are a serious setback for everyone who relies on public transit across North America," said Josipa Petrunic, President & CEO of CUTRIC. "Transit systems in both countries are deeply interconnected. When costs rise south of the border, Canadian manufacturers, transit agencies, and, ultimately, taxpayers will feel the impact."

While the tariffs will not immediately force manufacturers to shift operations into the United States, they will likely lead to a split of the market, with smaller production runs on each side of the border, higher prices for vehicles and parts, and lost economies of scale. Over time, both Canadian and American taxpayers will pay more for fewer buses, threatening jobs and stalling climate action.

"In the short term, local governments and transit riders in the U.S. will face higher costs and reduced service. In the longer term, Canadians will be impacted as manufacturers adjust to fragmented markets and rising costs," added Petrunic. "This is the moment for Canada to double down on its own commitment to Canadian content requirements, strengthen local supply chains, and provide stable federal investment if we want to protect jobs and keep our zero-emission transit momentum."

Canada has one of the strongest passenger transportation manufacturing supply chains in the world, employing more than 25,000 workers across the country. To preserve Canada's competitive advantage in passenger transportation manufacturing, CUTRIC is urging the Government of Canada to:

• Advocate for a permanent, zero-per cent sectoral tariff for transit products under CUSMA.
• Elevate transit as "Major Projects" and standardize Canadian content rules nationally to support domestic manufacturing and reduce red tape.
• Recognize the strategic value of passenger transportation manufacturing for national security and climate leadership.

About CUTRIC
The Canadian Urban Transit Research & Innovation Consortium (CUTRIC) is Canada's non-profit leader in zero-emission transit and smart mobility, supporting innovation, research, and systems integration for decarbonized public transportation across North America.

SOURCE Canadian Urban Transit Research & Innovation Consortium (CUTRIC)