Trade policy might not usually top a fleet manager’s inbox, but the newest round of automotive import tariffs is making waves, and fast. Beginning in April and May 2025, a 25% tariff was imposed on certain imported automobiles and parts, with significant implications for the work truck industry.

The change stems from a national security review first initiated back in 2019, when the U.S. Secretary of Commerce found that increasing reliance on foreign-made vehicles and components could weaken America’s domestic auto manufacturing base. 

After stalled negotiations and years of monitoring, the policy was formally enforced in a March 2025 proclamation, triggering ripple effects across dealerships, upfitters, and supply chains, especially in the light- and medium-duty sectors.

As Charles Mathew, assistant director of Order & Upfit at Merchants Fleet, put it: “The 25% tariffs on imported vehicles and parts are causing considerable ripple effects throughout the light- and medium-duty fleet markets.”

Dealers Are Feeling the Heat and So Are Upfitters

Even though the new tariffs don’t apply to imports from Canada and Mexico, the wider fleet market is reacting with understandable caution.

“The 25% tariffs on imported vehicles and parts are causing considerable ripple effects throughout the light- and medium-duty fleet markets,” Mathew explained. “Dealers are accelerating vehicle purchases to hedge against potential future shortages, which has resulted in some price inflation at the dealership level.”

On the upfit side, although there are no major shortages yet, both vendors and fleet teams are closely monitoring the supply chain, particularly regarding raw materials and global shipping disruptions.

Scenario Planning and Flexibility Are Now Essential

With uncertainty on the rise, successful fleets are proactively shifting their strategies. That means building out Plan B (and C and D) well before the pressure hits.

“At Merchants Fleet, we’re seeing clients use scenario planning to model out potential tariff impacts across high-, medium-, and low-risk cases,” Mathew shared. “This gives them a strategic head start in budgeting and inventory decisions.”

Another smart tactic? Don’t rely on just one OEM. Diversifying sourcing across several automakers gives fleets the flexibility to adjust when timelines or pricing shift, and avoids putting all your trucks in one basket. Charles also recommends having backup upfit specs ready to go, whether it’s a different ladder rack supplier or a simpler service body option, so production doesn't grind to a halt.

Speed Is the Name of the Game

Fleet managers have always had to juggle lead times and budgets, but today’s environment calls for faster decision-making and more tactical execution.

“The tightening of quote validity, often under 30 days now, is forcing a shift from long-range planning to more tactical execution,” Mathew said. To stay on budget and on time, he recommends several concrete steps:

• Submit POs quickly once a quote is secured to lock in pricing.

• Maintain a pre-approved list of alternate components so substitutions can be made without delay.

• Centralize communications with upfitters and vendors to keep everyone in sync.

• Lean on fleet partners (like Merchants) to filter out noise and provide real-time updates that actually help.

Which Upfit Components Are Most Vulnerable?

If your build includes anything heavy, metallic, or internationally sourced, there’s a good chance it’s now a pricing wildcard.

“Components with international sourcing or heavy raw material input, such as metal-based racks, storage systems, and service bodies, are particularly vulnerable to tariff-driven price increases,” Mathews noted. 

While supply hasn’t dried up, the cost curve is becoming steeper due to rising material prices and geopolitical pressure.

So what can fleets do? Try:

• Standardizing alternate specs to make vendor switching less disruptive.

• Baking in fluctuation clauses into approval workflows to plan for pricing swings.

• Exploring U.S.-sourced or assembled options, which may come with tariff exemptions or rebates.

Smaller Fleets, Bigger Risks but There’s Still a Path Forward

Smaller operations might not have the leverage or buying power of enterprise-level fleets, but they’re not out of luck. It just takes a little more foresight and strategic partnering.

“Smaller fleets can stay competitive by focusing on agility and relationships,” Mathews advised. That includes:

• Tapping into fleet management companies with wider OEM and upfitter access.

• Starting the planning process earlier; think six months out, not three.

• Using standardized upfit templates to cut back on variability and delays.

• Staying flexible with components instead of customizing every truck.

That last part is key. 

“Swapping to a similar, more readily available component may prevent months of delay,” Mathews added.

Fleet Market Trends Worth Watching

The market is adjusting, and so are fleet strategies. Many are extending upfit timelines and broadening their OEM mix to reduce risk. Some are even splitting orders between manufacturers or repurposing interim fleet assets when delays stretch out.

“We're also seeing an increased use of interim vehicle fleets temporarily shifting short-term assets to long-term applications when OEM orders are delayed,” Mathews explained. “Key trends to watch include further OEM diversification, greater use of American-assembled components, and tighter integration between ordering and upfitting partners to reduce handoff lag.”

In other words? Staying nimble, informed, and proactive will be the name of the game for the foreseeable future.