Peterbilt owner Paccar jumps after Trump tariffs on heavy trucks
A Peterbilt 579 truck equipped with Aurora’s self-driving system is seen at the company’s terminal in Palmer, south of Dallas, Texas, September 23, 2021.
Tina Bellon | Reuters
Shares of Paccar jumped about 5% on Friday after President Donald Trump announced that he will impose a 25% tariff on imported heavy trucks beginning Oct. 1.
Trump said in a social media post Thursday that “large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions.”
PCAR 5-day chart
Paccar is the owner of Peterbilt and Kenworth. It manufactures more than 90% of its U.S. trucks domestically but they cost $8,000 to $10,000 more than competitors in Mexico, Bank of America told clients in a Friday note.
Trump’s announcement “likely addresses this issue and places PCAR in the driver seat,” BofA analyst Michael Feniger said.
Read More: Peterbilt owner Paccar jumps after Trump tariffs on heavy trucks