HS Code:
The category for vehicles of subheadings 8701.21, 8701.22, 8701.23, 8701.24, and 8701.29 under the Harmonized System (HS) Code pertains to road tractors for semi-trailers and other motor vehicles primarily designed for the transport of goods (commonly known as trucks or lorries). These subheadings differentiate based on engine type (diesel or other) and gross vehicle weight. This category is crucial in global trade due to its role in logistics, construction, and industrial sectors, facilitating the movement of goods across borders and within domestic markets.
Total Trade Volume
USD 45.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
6.5%
Highest Rate
25% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like USMCA or EU Single Market)
Shift towards electric and hybrid trucks
Increasing demand for eco-friendly vehicles due to stringent emission regulations in Europe and North America, driving innovation and investment in electric vehicle technology.
2022
Rising production costs due to supply chain disruptions
Global shortages of semiconductors and raw materials have led to higher prices and delays in vehicle production, affecting trade volumes.
2021-2022
Growth in e-commerce driving demand for delivery vehicles
Increased need for medium and heavy-duty trucks for last-mile delivery, boosting trade in regions with strong logistics networks like North America and Asia-Pacific.
2020-2022
The European Union introduced tighter CO2 emission targets for heavy-duty vehicles, mandating a 30% reduction by 2030 compared to 2019 levels.
January 2023
This is expected to accelerate the adoption of electric and hybrid trucks, potentially increasing production costs in the short term but benefiting exporters of green technology.
The United States-Mexico-Canada Agreement (USMCA) has reduced tariffs and streamlined customs processes for vehicles in this category, enhancing trade flows within the region.
July 2020 (Ongoing impact in 2023)
Significant increase in exports from Mexico and Canada to the U.S., strengthening regional supply chains for truck manufacturing.
Ongoing shortages of semiconductors have disrupted the production of heavy-duty vehicles, leading to reduced export volumes from key manufacturers.
Mid-2021 to 2023
Trade volumes have been constrained, with delays in delivery affecting markets worldwide, particularly in Europe and North America.