How will the US tariffs impact Class 8 trucks and Bharat Forge?

The tariff war that has escalated over the last three days has brought every sector in to the spotlight and the potential impact such moves could have on them. Class 8 trucks in North America could see a significant cost escalation if the tariffs stay in place, according to a note from FTR Transport Intelligence.The transport agency said that as many as 40% of the US class 8 trucks are built in Mexico and 65% of Canada’s class 8 trucks are built in the US. Canada plans on imposing counter tariffs on trucks, steel, car and other products over the next three weeks.
“Tariffs and counter-tariffs will disrupt supply chains and drive up vehicle prices,” the FTR note said.
This also brings Bharat Forge into focus as it has exposure to class 8 trucks in the US.Bharat Forge shares gained over 2% on Wednesday, March 5, even though the class 8 truck orders in the US declined for the fifth consecutive month.

The north America class 8 truck orders declined 34% to 17,000 units from the previous year’s 25,700 units and were down 29% from the previous month’s 24,000 units.

The February orders are at the lowest levels since August 2024.

On another note, last month, Bharat Forge signed a letter of intent with AM General, USA to supply advanced artillery cannons manufactured in India. This marks the first-ever agreement for the supply of artillery cannons from an Indian defense company to the United States, underscoring the strengthening of defense cooperation between the two nations

Bharat Forge shares were trading 2.12% higher at ₹1,044.5 apiece at 11.20 am on Wednesday, March 5. The stock has declined 35.07% in the past six months.

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