Just yesterday, new tariffs of 25 percent on imports from Mexico and Canada took effect, which figure to impact a variety of companies, including Ford. The Blue Oval produces the Ford Maverick, Ford Bronco Sport, and Ford Mustang Mach-E in Mexico and gets various other components from those same countries, too. While the company hasn’t yet announced how it will respond to these new tariffs, the Ford-backed lobby group Alliance for Automotive Innovation (AAI) has stated that they could cause some new vehicle prices to increase by 25 percent, however.
“All automakers will be impacted by these tariffs on Canada and Mexico,” said John Bozzella, head of the Alliance for Automotive Innovation, according to Reuters. “Most anticipate the price of some vehicle models will increase by as much as 25 percent and the negative impact on vehicle price and vehicle availability will be felt almost immediately. You just can’t relocate automotive production and the supply chain overnight. That’s the challenge and the dilemma: auto tariffs in North America could end up increasing costs on consumers before jobs come back to the country.”
Ford CEO Jim Farley originally called for more comprehensive tariffs and stated that these actions are causing “chaos” in the industry – adding that these Mexico tariffs, specifically, could “blow a hole in the U.S. industry that we’ve never seen.” However, the exec later paid a visit to Capitol Hill to discuss these matters with the Trump administration. Following that visit, Farley voiced his support for Trump’s plan to place tariffs on all imported automobiles. Regardless, some Ford factory workers remain concerned about the potential impacts these levies may have on their jobs, though it’s possible that the tariffs may actually help boost American automotive production, at least, in the long run.
In fact, several other automakers have announced plans to shift production to the U.S. as a result of these new tariffs. Volkswagen recently stated that it will add more vehicle production to its plant in Chattanooga, Tennessee, and added that it may also build Audi and Porsche models in the U.S. for the first time as well. Currently, all Porsche models are built in Germany, while Audi has a factory in Mexico in addition to Europe. Another recent report indicates that Honda is thinking about building the next-generation Civic in the U.S. because of tariffs, rather than Mexico, as previously planned, though as Bozzella mentioned, it will take some time for these shifts to happen.
Comments
How much would prices of everything drop if every country got rid of all of their tariffs? Why is it being portrayed as a bad thing when we finally have reciprocal tariffs?
We have a complete imbecile in the oval office who knows nothing about tariffs,etc. Just trying to act tough for his MAGA maggot base who buy all his crap. Really sad.
Agree and much of his MAGA base will be the ones affected either through job loss or higher prices. As they say be careful what you wish for you might get it.