Since Donald Trump won the 2024 U.S. Presidential election earlier this month, there has been rampant speculation about what he will do when he heads into his second term in January – with much of that speculation revolving around the automotive industry. Based on comments Trump made during his campaign, it’s possible that he’ll implement a 25 percent tariff on goods imported from Mexico, and potentially China and Canada as well. As one would imagine, such a move would have a big impact on automakers that currently build vehicles in Mexico and import them into the U.S., but according to a new report, Ford could be impacted more than most of its peers.
According to Reuters, Ford’s cross-town rival, General Motors, exports more vehicles from Mexico into the U.S. than any other automaker – up to 750,000 units in 2024 from that country and Canada combined, with 354,000 coming from Mexico alone through the end of June. The top 10 automakers on this list collectively produced 1.4 million vehicles in Mexico over the first six months of this year, 90 percent of which were shipped across the border and sold in the U.S.
However, Ford is the second biggest producer of vehicles in Mexico that are sold in the U.S., followed by Stellantis, as it moved 195,595 units across the border from January through June 2024. Additionally, Mexico and Canada currently account for 50 percent of all auto parts exported to the U.S., valued at around $100 billion. If Trump ultimately chooses to implement these proposed tariffs – which include an extra 10 percent on Chinese imports – it would only add to the Biden Administration’s tariffs imposed on various goods from China that just took effect back in September.
However, it’s unclear if Trump actually plans on implementing these tariffs, or if the threats are simply a negotiating tactic, as the United States-Mexico-Canada Agreement (USMCA) is up for review. In the meantime, Ford has no plans to move its production from Mexico to the U.S. even if these tariffs are ultimately put in place. Trump is also reportedly mulling the elimination of the existing federal EV tax credit, too.
Comments
Good. Serves them right. Move the Maverick to BOC since the plant will not be filled with EVs, the Mach E to Flat Rock, and the Bronco Sport to Louisville. Problem solved.
You’re a busy boy tig. Lots of keyboard pounding over at GMA too.
😉
Do that and prices will go up almost double! I bet you are a big Walmart buyer, which sells imported products ffom China.
Not true. Perhaps a $1000 or so, but I would gladly pay the difference if it were built in the United States. BTW, I hardly ever shop at Wal-Mart due to their sourcing practices.
Sell your cars in America, build them in America employing Americans to manufacture them. Make America’s Automobile Manufacturers Great Again.
Canada and Mexico are in North America, so they are as American as you!
And Mexico pays their workers a tenth of what Canadian and US workers make
Farley is a dumbass. He needs to go.
That’s what FORD gets for thumbing its nose at U.S. employees, businesses, and consumers.
Trump is blowing more hot air. He failedto keep his election promises from 2017 to 2020, and, as a ironic fact, signed the USMCA Act himself! He will NOT change this Act.
Biden’s administration made a blunder in pushing all EV vs gradual implementation with HYBRID as an alternative. I saw NON-plug-in
HYBRID, a 2022 Ford Maverick Lariat, as my viable alternative to our
F-150 when my husband could no longer drive. I ordered it July-2021,
took delivery April-2022 and have been amazed at the gas savings as
well as the ease of handling AND get-up-and-GO energy! I average
30-40 mpg, winking as I pass gas stations, AND the battery regenerates
as I frequently brake, especially up and down hilly areas. I have a new
2025 Ford Maverick Lariat on order, with production beginning. I expect
delivery early in 2025! Gas savings the past several years more than offset the lack of any govt/incentive to buy a HYBRID.