Firefighters responded to the scene at about 8:15 a.m. to a house at 15078 Lakeshore when business owner Steve Kiekover discovered the fire.
"I was in the basement, actually," Kiekover said. "I was installing a water line."
Kiekover said he came out to get more tools and found the air compressor in the back of the pickup truck on fire.
"We hit it with a fire extinguisher," he said. "We tried buckets and a garden hose, but couldn't get it out.
Grand Haven Township and Grand Haven Department of Public Safety firefighters used foam to extinguish the fire, said Township Fire Chief Tom Gerencer.
Kiekover said the trailer was brand new and worth about $6,000. The truck and its contents were about $25,000, he said.
Firefighters cleared the scene shortly after 9 a.m.
The cause of the fire is under investigation.