PACCAR stock jumps after Trump's tariff announcement on heavy trucks

Investing.com -- PACCAR Inc (NASDAQ: PCAR) stock rose 6% Friday morning as investors reacted to U.S. President Donald Trump’s announcement of a 25% tariff on imported heavy-duty trucks, which could benefit domestic manufacturers.

The tariffs, set to take effect October 1, 2025, are part of a broader set of duties announced by Trump that have rattled automotive sector stocks. While European truck manufacturers like Daimler Truck and Traton saw their shares fall by 3.3% and 2.8% respectively, PACCAR emerged as a potential winner.

Analysts at JPMorgan noted that PACCAR is in a better position compared to its German competitors regarding future margin and capital expenditure impacts, as it primarily assembles trucks in the United States. Bernstein analysts echoed this sentiment, stating that "PACCAR could be the greatest beneficiary" of the tariff policy.

According to Bernstein, 95% of PACCAR’s Class 8 truck sales in the U.S. are manufactured domestically, compared to just 28% for Daimler Truck and 2% for Volkswagen-owned Traton, which produce most of their U.S.-sold trucks in Mexico.

The tariff announcement specifically targets "Heavy (Big!) Trucks" made outside the United States. While both Daimler Truck and Traton have factories in the U.S. and Mexico covered by the USMCA free trade agreement, analysts assume the tariffs will apply to Mexican production sites as well.

By contrast to the German manufacturers’ declines, Swedish truck maker Volvo saw its shares rise as much as 3%, with analysts noting that 100% of its U.S. truck sales are produced domestically.

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