North American (N.A.) Class 8 net orders in April plunged 54% both month-over-month (m/m) and year-over-year (y/y) to just 7,400 units – the lowest order total since May 2020 when order activity cratered due to Covid shutdowns. Orders were far below the seven-year April average of 18,963 units.

The announcement of reciprocal U.S. tariffs in early April further intensified the challenges posed by tariffs that had already been announced. Tariffs and related concerns over the economy and the freight market have significantly dampened fleet investments in Class 8 trucks and tractors this year. Some fleets apparently are holding off on truck and tractor purchases until market conditions improve or at least stabilize. Net orders for 2025 through April are down 30% y/y while Class 8 retail sales are down 10% y/y through March. Cumulative net orders for the 2025 order season (September 2024 through April 2025) are down 11% y/y. Increasing levels of cancellations in response to growing uncertainty might have contributed to the unusually low order levels this month. Both the on-highway and vocational markets saw substantial declines m/m due to weakening demand fundamentals. Through April, orders for the last 12 months totaled 269,772 units.

Dan Moyer, senior analyst, commercial vehicles, commented, “New and pending U.S. tariffs and retaliatory tariffs will significantly increase costs for Class 8 trucks, tractors, and related components. In addition to slowing economic and truck freight market growth, prolonged tariff-driven cost increases and, potentially, regulatory changes could further suppress near-term demand within the Class 8 segment. This will very likely reduce industry volumes, complicate production planning, and negatively affect profitability and stability for OEMs and suppliers in the North American Class 8 truck market.

“This challenging environment is further complicated by anticipated revisions to the U.S. EPA’s 2027 NOx regulations. Although orders may be approaching their seasonal/cyclical low point, it is unclear how long these depressed demand levels will persist.”

FTR will address Class 8 and medium-duty market trends, economic shifts, regulatory changes, and supply chain challenges on May 13 at its Heavy & Medium-Duty Commercial Vehicle Symposium, to be held in Bloomfield Hills, Michigan.