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Global Tariffs, Categorized

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📦 With a capacity of 40.8 metric tons or less

With a capacity of <il>40.8 metric tons</il> or less

HS Code:

📦

Overview

The category 'With a capacity of 40.8 metric tons or less' typically falls under HS Code 8704, which covers motor vehicles for the transport of goods. This specific subcategory includes trucks and vans designed for cargo transport with a gross vehicle weight not exceeding 40.8 metric tons. These vehicles are widely used in logistics, construction, and small-scale freight operations across various industries. The category is significant in global trade due to the essential role these vehicles play in domestic and international supply chains, particularly for last-mile delivery and regional transport.

Total Trade Volume

USD 25.6 billion

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

6.5%

Highest Rate

25% (imposed by certain developing countries to protect local industries)

Lowest Rate

0% (under free trade agreements like USMCA and EU-Japan EPA)

Common Restrictions

  • Import quotas in some countries to limit foreign competition
  • Emission standards compliance requirements
  • Safety certification mandates
  • Local content requirements for assembly

Market Trends

Shift towards electric and hybrid vehicles

Increasing demand for eco-friendly transport solutions is driving innovation and investment in electric trucks with capacities under 40.8 metric tons, particularly in urban logistics.

2021-2023

Rising e-commerce demand

Growth in online shopping has boosted the need for smaller capacity trucks for last-mile delivery, particularly in densely populated regions.

2020-2022

Supply chain disruptions

Global semiconductor shortages and logistical bottlenecks have slowed production and delivery of vehicles, impacting trade volumes temporarily.

2021-2022

Recent Developments

EU Emission Standards Tightening

The European Union introduced stricter emission regulations for commercial vehicles, including those under 40.8 metric tons, pushing manufacturers to adopt cleaner technologies.

January 2023

Increased production costs for manufacturers but potential long-term growth in demand for compliant vehicles in the EU market.

USMCA Trade Agreement Updates

Revised rules of origin under the USMCA have incentivized North American production of light and medium-duty trucks, benefiting manufacturers in the US, Canada, and Mexico.

July 2022

Strengthened regional trade ties and reduced tariffs among member countries, boosting trade volumes.

China's Export Surge in Electric Trucks

Chinese manufacturers have ramped up exports of electric trucks in this capacity category, capitalizing on government subsidies and growing global demand for sustainable transport.

March 2023

Increased competition for traditional manufacturers in Europe and North America, potentially lowering prices for consumers.