The tariffs are expected to further drive up truck prices, in addition to previously imposed tariffs on aluminium and steel. The setback for truck manufacturers by the Federal Government follows legal action by the four biggest manufacturers against California’s regulator over an agreement they signed to support electric truck rules, siding with the Trump administration’s efforts to shut down the electric truck market. 

But the strategy by Daimler, Volvo and Traton looks set to backfire and pose a serious financial risk as the U.S. tariffs are expected to eat into sales. At the same time China is surging in electric truck manufacturing, with the potential to grow its business beyond its borders, according to a new report by BloombergNEF. The report shows the major truck manufacturers are failing to keep up with their commitments on electric trucks and as a result “may miss opportunities”. 

Global groups two weeks ago wrote to the four manufacturers and their parent companies urging them to drop the lawsuit given the harm it will do to the U.S. trucking industry, by binding it to higher diesel prices and halting innovation.

Ben Scott, Head of Energy Demand, Carbon Tracker: “These US tariffs will erode diesel truck margins, exposing manufacturers to heightened costs at a time of weak sales. Their choice to side with the Federal Government in suing California over clean truck rules now looks like a serious misstep in risk management – aligning with an administration that is simultaneously driving up prices of trucks through tariffs.  

“By contrast, the market for zero-emission freight is projected to grow over the next decade. Unless manufacturers pivot towards electrification, they risk compounding regulatory and cost exposure while ceding longer term value creation”. 

Craig Segall, former Deputy Executive Officer, CARB: “Selling diesel trucks in 2040 is going to be like trying to sell whale oil in 1940. The big companies keep trying to drag us back to the last century; it just is not going to work.

“It’s just a loser strategy to keep trying not to innovate. Pile more tariff costs on top of existing bad investments in aging technology and you’ve got a recipe for collapse. If I was investing in this market, I’d be looking for anyone who knows they’re living in this century.”

Katherine García, Sierra Club Clean Transportation for All Campaign Director: “The Trump administration’s truck tariffs present a dangerous risk to investors, jobs, and fleets, threatening to hamstring the U.S. electric truck market while progress booms across global markets. This is the perfect opportunity for manufacturers to produce electric trucks in the U.S. and ramp up sales to American fleets. Investing in electric trucks is a win-win: Cleaner air and less toxic pollution for our communities and lower fuel and maintenance costs for the trucking industry.”

The new data by Bloomberg NEF shows China and Europe are ramping electric truck adoption and the U.S. is falling behind. Volvo globally sold around the same number of electric trucks in the first half of 2025 as in the same period in 2024. Daimler and Traton are increasing sales but they remain small and are significantly behind Volvo. 

Emissions rules and the move towards electric trucks are estimated to save fleets up to $2.4 billion per year in fueling and maintenance savings. Thousands of businesses across the U.S. have already deployed over 52,000 electric trucks.

Together, the four main truck manufacturers in the U.S. control the vast majority of the sales market – with Daimler controlling around 40% and Volvo controlling around 15%. Both have made commitments for all new truck sales to be carbon-free but Daimler sells less than 1% electric trucks and Volvo around 1.7%.