PACCAR Inc (NASDAQ:PCAR) saw its stock climb 6% Friday morning following U.S. President Donald Trump’s decision to impose a 25% tariff on imported heavy-duty trucks, a move expected to favor domestic producers.
The new tariffs, scheduled to take effect on October 1, 2025, are part of a broader package of duties that has unsettled automotive stocks. European truckmakers such as Daimler Truck and Traton experienced declines of 3.3% and 2.8%, respectively, while PACCAR emerged as a key potential beneficiary.
JPMorgan analysts highlighted that PACCAR is better positioned than its German rivals to manage potential impacts on margins and capital expenditures, thanks to its predominantly U.S.-based assembly operations. Bernstein analysts concurred, stating that “PACCAR could be the greatest beneficiary” of the tariff measures.
Bernstein noted that 95% of PACCAR’s Class 8 trucks sold in the U.S. are produced domestically, compared with just 28% for Daimler Truck and 2% for Volkswagen-owned Traton, which mainly manufacture trucks for the U.S. market in Mexico.
The tariff specifically targets “Heavy (Big!) Trucks” imported from outside the United States. Although Daimler Truck and Traton operate plants in both the U.S. and Mexico under the USMCA free trade agreement, analysts anticipate the tariffs could extend to Mexican production sites.
In contrast to the German manufacturers’ losses, Swedish truckmaker Volvo saw its shares rise up to 3%, with analysts noting that all of its trucks sold in the U.S. are manufactured domestically.
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