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DTNA’s net earnings impact from tariffs was 250 million euros, or $285.3 million. (Daimler Trucks North America)

A rise in order activity has increased the potential that Daimler Truck North America customers will see an increase in prices for Freightliner and Western Star models, as stronger market conditions create an environment where price increases to offset tariff costs can be tolerated, a company executive said.

“The probability of increasing pricing slightly or potentially increasing tariff surcharges over the year has increased due to the positive order momentum,” said Eva Scherer, chief financial officer of DTNA parent company Daimler Truck, during the company’s March 12 fourth-quarter earnings call.

This could particularly affect trucks assembled in Mexico, but the size of the increase and the timing would depend on the progress of a still-nascent rebound in Class 8 orders, she noted. DTNA decided not to increase tariff surcharges in Q4 because it believed “customers and the market couldn’t digest it at that time,” Scherer said.

DTNA operates two Mexican manufacturing plants: the Santiago Tianguistenco and Saltillo facilities.

DTNA notched 52,293 orders in the fourth quarter of 2025, up 6% from 49,557 orders in the year-ago period. First-quarter 2026 order levels are building on those green shoots, including for Freightliner’s flagship Cascadia tractor, Scherer said.

ACT Research data shows industrywide North American Class 8 orders jumped 156% year over year in February to 46,200 trucks also rose 50% compared with January’s total. February is historically a weak month for orders.

FTR Transportation Intelligence calculated orders came in at 47,200, compared with a 10-year February average of 24,991 trucks.

In contrast, November orders fell 47% to 19,200 Class 8 trucks, according to ACT data, in what is typically one of the strongest months of the year for orders.

November saw the introduction of 25% Section 232 tariffs on imports of medium- and heavy-duty trucks and parts by the Trump administration while uncertainty also prevailed over the introduction of Environmental Protection Agency tailpipe emissions regulations.

Market Not Ready for Q4 Surcharge Hikes

Overall in 2025, Daimler Truck said DTNA’s net earnings impact from tariffs was 250 million euros, or $285.3 million, stemming from the truck and parts tariffs, Section 232 levies on imports of steel, aluminum and copper plus International Emergency Economic Powers Act duties.

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The Section 232 tariffs on trucks and parts bit hard, Scherer noted. “The Section 232 truck tariff impact was a bit higher than the IEEPA and 232 steel, aluminum [and] copper part,” she said, the latter referring to the emergency tariffs implemented by President Donald Trump that the U.S. Supreme Court overturned.

Section 232 tariffs on imports of steel and aluminum debuted in February 2025 and doubled in June. Tariffs on certain semi-finished copper products and derivative products became effective in August.

Freightliner is the largest Mexican truck producer, according to government data. In February, the company built 5,538 trucks in Mexico, a 32% year-over-year decrease, according to the National Institute of Statistics and Geography (INEGI). Most of the trucks are exported to the United States, INEGI data show. Powertrains from the company’s Detroit component division are manufactured in Michigan and installed in Freightliner trucks in Mexico. “A powertrain from a value perspective is roughly half of a truck,” Scherer said.

DTNA Seeks Relief for US Content

The company has applied for tariff relief through credits from the U.S. government but is still waiting to hear back from the Trump administration, Scherer told analysts. DTNA’s tariff level will depend on the level of preferential treatment received, which will be based on how much certified U.S. content is contained in a truck.

Portland, Ore.-based DTNA posted a return on sales or operating margin of 10.7% in 2025. Without the tariffs, the ROS would have been 12%, according to its parent company. The ROS in Q4 was 7.2% after the Section 232 truck and parts tariffs went live.

Base 2026 ROS Seen at 6%

Daimler Truck’s working assumption is that 2026’s base ROS will be 6% due to the tariffs, but if credits come through at higher levels the ROS could be as high as 8%, said Scherer.

“We’re pretty confident that we’re going to... get this, but it’s not confirmed yet, which is why we want to be, consciously, a bit cautious with our [guidance],” she added.

The ROS will also be affected by truck demand and how close to capacity DTNA manufacturing plants are running.

Revenues at DTNA fell 29% year over year in Q4 to $4.882 billion from $6.899 billion in the year-ago period due to the ongoing decline in truck sales. The division’s adjusted earnings before interest and taxation slumped 58% to $353.8 million from $849.4 million. Daimler Truck reports earnings in euros and conversions were correct as of March 12.

DTNA sold 34,017 trucks and buses in the most recent quarter, a decrease of 27.5% compared with 46,906 in the year-ago period. It sold 141,814 vehicles in 2025, a decrease of 25.7% compared with 190,727 trucks and buses in 2024.

The parent company anticipates industrywide Class 8 truck demand in North America to range between 250,000 and 290,000 vehicles, compared with 258,000 trucks in 2025. Daimler Truck includes the U.S., Canada and Mexico in its outlook.