PACCAR Inc. (NASDAQ: PCAR) shares are trading higher Friday after it was reported President Donald Trump will impose a 25% tariff on heavy trucks made outside the United States starting Oct. 1.
What To Know: Trump said on Truth Social that "all heavy (big!) trucks made in other parts of the world" will face the higher tariffs. He said the move is aimed at protecting U.S. manufacturers such as Peterbilt, Kenworth, Freightliner and Mack Trucks from "unfair outside competition" and addressing national security concerns.
PACCAR shares are gaining as investors expect the company's U.S.-based brands to benefit from tariffs that raise costs on foreign-made trucks.
The decision was part of a broader tariff package that also includes 100% duties on branded drugs, 50% tariffs on kitchen cabinets and 30% on upholstered furniture, all of which will take effect Oct. 1.
PACCAR said it is looking forward to reviewing the details of the administration's Section 232 announcement. Daimler Truck, parent of Freightliner, and Mack Trucks, owned by Volvo Group, did not immediately comment.
The White House has recently launched multiple investigations into imports of industrial goods such as robotics, machinery and medical devices to determine potential national security risks.
PCAR Price Action: At the time of writing, PACCAR shares are trading 5.16% higher at $100.51, according to data from Benzinga Pro.
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