What Commercial Vehicle OEMs, Body Builders and Upfitters Should Do Now to Prepare for Ongoing Tariff Shifts

From rising tariffs to changing emissions standards, commercial vehicle players need to act strategically and early to ensure they’re ready to face the next policy shift that is surely coming down the line.

In part 1 of this two-part miniblog series, we provided five Trump administration takeaways for the commercial vehicle industry. In this blog, we’ll offer strategic recommendations to help ensure your competitive advantage, even in the face of changing policies.

Five Strategic Recommendations for the Commercial Vehicle Industry

One: Rethink Your Sourcing Strategy Before the Next Shift

Review your entire supply chain to ensure you’re up to speed on import penalties and policy swings that could affect your business. For original equipment manufacturers (OEMs) with plants outside of the United States, moving component production stateside is one way to reduce exposure to tariffs. However, this could come with trade-offs. For example, General Motors expanded into Fort Wayne, leaving its plants in Canada and Mexico underused.

Adding new US capacity also requires capital, workforce training and years of ramp-up. On the other hand, sourcing from Mexico could still offer cost advantages, even when weighed against tariff penalties. Be sure to balance current capacity, policy exposure and long-term flexibility rather than chase short-term political wins.

Two: Explore Partnerships to Share Risk and Keep Moving Forward

As the commercial vehicle market shifts, collaboration becomes even more valuable. Across the industry, OEMs are using joint ventures and partnerships to reduce exposure, scale technology and manage investment.

Stellantis and Samsung SDI, for instance, are partnering to build two electric vehicle (EV) battery gigafactories in Indiana. Mercedes-Benz and Rivian are co-developing electric vans while Volkswagen has invested $1 billion into Rivian to accelerate software development. These alliances help spread the cost and operational risks of rising expenses and ongoing supply chain disruptions.

Three: Diversify Emission Reduction Strategies

With the federal EV tax credit on the chopping block and charging investments scaled back, the business case for electrifying commercial fleets has weakened. But that doesn’t mean the emissions conversation is over. Many OEMs are moving toward a broader view of emissions reduction—one that includes natural gas, biodiesel, hybrids and extended range vehicles.

Natural gas trucks have existed for years but are getting renewed attention as a domestically sourced, lower-emission alternative. Biodiesel, already used widely in California, is likely to expand across the United States. Meanwhile, hybrid vehicles—specifically in lighter and mid-range applications—offer a bridge between internal combustion and full electrification. Due to US policies, hydrogen and battery electric vehicle (BEV) development is likely to be more concentrated overseas in the short- to mid-term.

Four: Increase Operational Agility Before It’s Too Late

OEMs should look at ways to make their operations more flexible—such as using manufacturing setups that can be adjusted quickly, working with more than one supplier and building delivery systems that can handle changes. Plants that can switch between different product lines or fuel types will be in a stronger position if policies shift again.

Suppliers should also plan for the unexpected. Relying on just one region or supplier isn’t a safe bet anymore. In some cases, that might mean having backup systems or repeating some steps across locations to stay ready for sudden changes in tariffs or regulations.

Since it’s unclear how policies may change in the future, it’s important to stay flexible when making long-term plans. Don’t base big investments only on current conditions. Instead, focus on building systems that can adjust as things change. Keep an eye on trade and regulation updates and be ready to shift your approach when needed. This should be a key part of how you plan and run your operations.

Five: Monitor Market Sentiment for Better Alignment

As policies evolve, so do attitudes. Buyers who once prioritized cost may now look more favorably on US-made vehicles if import prices rise and messaging around domestic manufacturing intensifies.

The right commercial vehicle market research and intelligence can help you better understand these changing conditions. Companies that actively monitor buyer sentiment, track competitors, and keep current with regional regulations will be best positioned to align offerings with what customers actually value.

When Policy Shifts, Stay Two Steps Ahead

Trump-era trade and energy policies are impacting US industry and sourcing—especially the commercial vehicle market—again. While the full impact is still unfolding, OEMs, body builders and suppliers must evaluate parts of their operation that are under pressure—from sourcing and production timelines to fuel strategy and buyer expectations.

To make more effective decisions, it’s not enough to react—you need to understand the shifts as they happen. That takes consistent, focused commercial vehicle market research and intelligence to track how policies are shaping buyer behavior, supply chain shifts and competitive moves. Companies that build this understanding into their process will be in a stronger position to adapt and compete—both in today’s market and as new policies take shape.

Get the full picture to power your next move. Our commercial vehicle and fleet industry specialists are ready to help you navigate today’s market and tomorrow’s opportunities with detailed supply, demand, inventory and sales insights. Use the form below to start the conversation.

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