Shares of US truck manufacturer Paccar climbed on Friday after President Donald Trump announced new tariffs on foreign-made heavy-duty trucks.
The move, framed as a measure to protect domestic manufacturers, sent ripples through global truck stocks and raised questions about the potential long-term impact on the industry.
Trump said on Thursday that starting October 1, 2025, the US will impose a 25% tariff on all heavy trucks manufactured outside the country.
He made the announcement on Truth Social, calling the tariffs a matter of “national security.”
“In order to protect our Great Heavy Duty Truck Manufacturers from unfair outside competition, I will be imposing, as of October 1st, 2025, a 25% tariff on all Heavy (Big!) Trucks made in other parts of the World,” Trump wrote. “Therefore, our Great Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others will be protected.”
Paccar, which makes Peterbilt and Kenworth trucks, saw its stock rise 5.1% to $100.45 on Friday.
The broader S&P 500 and Dow Jones Industrial Average were up 0.3% and 0.5%, respectively.
Mixed market reaction for global truck makers
The tariff announcement had divergent effects on global truck manufacturers.
Germany’s Daimler Truck, which makes Freightliner vehicles, saw its shares fall 1.7% in overseas trading.
In contrast, Sweden’s Volvo, which produces Mack trucks, gained 3.5%.
Both Mack and Freightliner brands are manufactured in the US, though Daimler also maintains truck production capacity in Mexico.
The tariffs could reshape competitive dynamics, with investors betting that Paccar and Volvo may gain market share at Daimler’s expense.
The market reaction underscores the dual nature of tariffs: they can raise costs for importers while potentially creating a more favorable pricing environment for domestic producers.
In the short term, traders appeared to view the policy shift as a net positive for Paccar.
Paccar’s recent stock performance
Despite Friday’s gains, Paccar shares have faced pressure in 2025.
Coming into the session, the stock was down 8% year-to-date and 2% over the past 12 months.
The declines have been tied to weaker demand in the truck market.
Paccar projects about 245,000 heavy-duty trucks will be sold in the US and Canada this year, down from roughly 260,000 units in 2024.
The company’s initial projections for 2025 were closer to 265,000 units, reflecting softer-than-expected demand.
On the financial side, Wall Street expects Paccar’s sales to fall to about $27 billion in 2025, according to FactSet data.
That would be down from almost $32 billion in 2024, though revenues are projected to recover to roughly $29 billion in 2026.
Valuation and outlook
Paccar stock currently trades at around 15 times estimated 2026 earnings, a higher multiple than its historical average of about 12 times.
Analysts note that cyclical companies, such as heavy-duty truck makers, often trade at elevated price-to-earnings ratios during earnings downturns and at lower multiples when earnings are near peak levels.
For investors, the key question will be whether tariffs can offset near-term market weakness and position Paccar for stronger performance in a recovering industry.
At the same time, the policy shift raises broader questions about potential cost increases, supply chain adjustments, and long-term implications for US and global truck markets.
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