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Ford Supplier Intends To Pass Trump Tariffs Onto Automakers

For some time now, newly elected U.S. President Donald Trump has batted around the idea of imposing tariffs on goods imported from places like Mexico and Canada, in addition to China. While Trump hasn’t actually imposed any of these tariffs yet – with some claiming that this is merely a negotiating tactic ahead of the forthcoming expiration of the existing United States-Mexico-Canada Agreement (USMCA), that hasn’t stopped the media and companies that stand to be impacted from these levies from expressing concerns about them, and that list now includes a big Ford supplier.

A photo showing the interior of a 2024 Ford F-150 Tremor.

That Ford supplier is Adient, according to Automotive News, whose CEO recently stated that the company plans to pass down any extra expenses incurred from these potential tariffs down to customers. “The customers have a level of understanding of what the impact is,” said Adient President and CEO Jerome Dorlack. “We’ve made it clear to them that this is not – at a 25 percent level or even at a 10 percent level – a burden that Adient is prepared to take on to our P&L on an ongoing basis and there will be a need for recovery that has to then be passed through the value chain.”

Adient currently supplies seats for a number of vehicles, including the Ford F-150 and Ford Mustang Mach-E, as well as for other automakers including Volkswagen and Fiat Chrysler, to name a few. The company has raked in some massive profits in the recent past, but just wrapped up its first fiscal quarter of the year by posting an adjusted net income of $23 million, which is a 20 percent decrease versus last year with a revenue of $3.5 billion – five percent less than the year before.

A rear three quarters view of the 2024 Ford Mustang Mach-E GT Performance Edition in Brazil.

While Ford CEO Jim Farley has stated that he isn’t worried about any potential Trump policy changes impacting the automotive industry, the automaker does produce a number of cheaper models in Mexico, specifically. However, Ford’s cross-town rival General Motors isn’t quite as optimistic, with GM Canada President Kristian Aquilina recently stating that these tariffs could disrupt the automotive supply chain.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. There is a simple (but not easy fix) only use suppliers that produce parts made in the US.

    Reply
    1. Yea at twice the price.

      Reply
    2. Everyone who has a vehicle will feel price increases, since many replacemt parts are made outside of the U.S. so you can thank trump!

      Reply
  2. Wow! What a surprise! Make America Smart Again!

    Reply
    1. Trump won’t do that he will bankrupt America.

      Reply
  3. Made in America Baby…. I look at every tag if it doesn’t have made in America on it my money stays in my pocket !

    Reply

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