Since Donald Trump won the U.S. presidential election last month, much ado has been made about what sorts of policies he plans to implement when he takes office in late January. Many of these proposals revolve around the automotive industry, with a focus on the potential tariffs that Trump may choose to place on vehicles, parts, and/or raw materials imported from places like Mexico and Canada, in addition to China – the latter which current President Joe Biden recently imposed tariffs on himself. If Trump ultimately does place additional tariffs on those countries, cheaper Ford models may be impacted the most, according to a new report.
As 24/7 Wall Street points out, around a third of all American vehicles sold in the U.S. with price tags under $30k are produced in Mexico at the moment, including the Ford Maverick and Ford Bronco Sport, which are two of the automaker’s cheapest vehicles on sale today (the Ford Mustang Mach-E, also built in Mexico, starts out at $39,995, too). Though nothing is set in stone as of yet, Trump has batted around the idea of imposing a 25 percent tariff on goods imported from Mexico, which would obviously have a massive impact on these more affordable models.
Trump has also proposed similar tariffs for goods imported from Canada, where FoMoCo builds a variety of components including engines, though no vehicles at the moment – at least, until Ford Super Duty production begins at the Oakville Assembly plant in 2026. Regardless, around 1.5 million vehicles are produced in Canada and imported into the U.S. annually from a variety of other brands. If these tariffs do in fact wind up becoming a reality, it’s possible that consumers may choose to simply keep their existing vehicles longer, a trend that has perpetuated amid skyrocketing prices over the past few years already.
However, it’s unclear if Trump actually plans on implementing these tariffs, or if these 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
Some were hoping that electing Trump would lower prices…especially eggs! Well folks, hold onto your wallets. The circus is back in town!
Trump duped his supporters. Prices will rise because of him.
Under Biden: record gas prices and highest inflation in 40 years. Your turn.
So leaving out how the inflation was COVIDs impact on supply chain and a global problem, that the US pushed it down faster than almost any other 1st world country, and unaware the president doesn’t control gas prices?
Education doesn’t hurt. Try it sometime.
If Biden was so wonderful how come his prodigy lost the election?
Because of the amount of people like “Biden Sucks” above that have no idea how economies or markets work being allowed to vote.
One thing I’ve learned while working tech support, NEVER underestimate how stupid the average American is.
They can’t even figure out how to properly ask Google a basic question. my 63yo aunt just learned how Banks work and use your money.
It’s a bargaining chip unless the other Countries fail to follow orders. Whatever Trump does is meant to help in the long run. Besides the outgoing President wasn’t so fantastic.
How is it a bargaining chip? All it does is hurt consumers, not the other countries.
Remove head from sand
It is. It doesn’t help consumers at all. All companies will do is move to the NEXT cheapest country. Which means higher costs.
How many stupid people do we have in this country?? Tariffs are a bargain ploy for Trump!! Other then that we should be producing car in this country not in foreign countries!! If we ever have another war, we can’t manufacture weapons we need just like meds. We will be screwed.
They only work to bargain if it means things get made in the US again.
first: Fords cars in Mexico have higher reliability ratings than US ones
Second: companies won’t return to the US unless it’s the cheapest option. They will just move to India, Thailand, Canada or the next cheapest place in line. Either way it just means consumers pay more in the end.
100% wrong! Your just a complainer!
Yet you cant make a counter argument.
If a company cannot make a reasonable profit on a 35k vehicle built in the United States then perhaps new management is in order.
It more that they can’t make a profit that INVESTORS want. Companies answer to INVESTORS and INVESTORS want peak profits. Thats why companies moved out of the US to begin with. To maximize INVESTOR returns. It’s not been about quality or a good product or the customer for decades.
Poor Maverick with its Halloween make over. It was designed to be the little brother of the F150 but Ford allowed kids to redesign the face. It will ein Ugliest truck of the year. Glad I got mine just in time (2022).
The 25% tariff will likely kill the Maverick and Bronco Sport for the US. If the 25% tariff is implemented by Trump, Mexico and Canada will implement a reciprocal tariff and the US will have a trade war. Trump might lose on his negotiations especially his message of Canada being the 51st State bullying only goes so far. Canada could decide to cut off oil and natural gas exports to the US. You don’t start a negotiation by being obnoxious.
Should build them here anyway. But if you like other countries taking all our jobs and not letting us sell our stuff in their countries, then keep voting demorat. The Bronco and Maverick were both going to be built here until those extra votes showed up back in 2020.
Looking at reliability ratings Mexico plants have better build quality than US ones. So why would I wanna pay more for a less reliable product?
It’s why I laughed at the US auto workers wanting more money. They pump out the lowest quality shit. They can’t even notice when a normal f150 has a huge single raptor seat in it or a Mustang weirdly has a single EU spec taillight.
I worked in a plant that made fasteners and latches for the auto industry. Guess what brands had the loosest quality tolerances? Ford, GM, Dodge. We filled their orders with parts that were rejects from BMW, VW and Honda orders
tariff or move back to US and have UAW workers build them. they’ll cost the same
US product has lower reliability ratings than the Mexican, Germany or Japanese factories. So all it will result in is lower build quality at a higher price.
If we dont level the playing field we will keep losing. Most people dont understand buisness thats why they are broke. Tarrifs in the long run will make us stronger. We been doing it the other way for too long thats why we have lost most of our manufacturing in this country and great jobs. Dont be dumb and negative. And dont listen to liberals, they have no end game and have no idea how things work in reality.
We lost manufacturing because PROFITS are King. If you can make 20-30% better profits making an item in another county, why would you, as a profit driven entity NOT do that? It makes no sense businesswise to NOT make the better profits.
Not to worry, there’s plenty of spare capacity in the US to build these vehicles.
All of you that voted for Trump I hope you’re happy. Trump is going to cost everyone more money. Part come from China, Mexico, Canada and on and on . The idiot that commented on Biden & gas prices. Biden has nothing to do with gas prices. When the other idiot was president he caused the pandemic. Gas prices were down because of no demand.