U.S. President Donald Trump signed an executive order today slapping a 25 per cent tariff on imported medium- and heavy-duty trucks beginning Nov. 1, with a carveout for vehicles traded under the Canada-U.S.-Mexico Agreement.

Trump is also giving U.S. automakers additional relief from tariffs on auto parts, extending what was supposed to have been a short-term rebate until 2030.

The amended action provides a rebate of 3.75 per cent relative to the sales price of a domestically assembled vehicle. That figure was reached by putting the 25 per cent import tax on parts that make up 15 per cent of a vehicle's sales price. Multiplying those two percentages together is equal to 3.7 per cent.

The rebate will also now be offered to manufacturers of trucks and engines, officials said.

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