Since taking office, President Donald Trump has imposed an additional 10 percent tariff on Chinese goods, as well as 25 percent on imported steel and aluminum. However, Trump has also stated that he intends to slap items – including automobiles – coming from Canada and Mexico with 25 percent tariffs as well, a move that had Ford CEO Jim Farley particularly concerned, since The Blue Oval builds a handful of vehicles and other components, such as engines, in those countries. Now, it’s possible that Ford won’t have to pony up for those tariffs, after all.
According to a new report from Bloomberg, Trump is now mulling the idea of imposing more targeted tariffs, rather than blanket ones, particularly as it pertains to reciprocal tariffs. Trump reportedly won’t place additional tariffs on countries that don’t place such levies on goods from the U.S., with plans to announce these actions on April 2nd – the same date auto tariffs were set to take effect. For now, however, it’s unclear if that will be the case.
According to this report, Trump is still considering tariffs on imported autos, but it’s possible that he will opt to delay the implementation of those levies again, as has previously been the case. As Ford Authority recently reported, Farley has supported universal tariffs for all imported vehicles, but he – along with Executive Chairman Bill Ford – simply want these actions to be a bit more predictable.
In the meantime, Ford has been working to minimize the potential impacts of these tariffs on its business, in a number of ways. In addition to scrutinizing its supply chain, Ford is also in the process of stocking up on parts that comply with the current U.S.-Mexico-Canada Agreement, and it’s also taking a second look at its operations in those countries and working to get things like engines across the border before these levies potentially take effect.
Comments
Of course they will. People will never understand Trump. He will posture and make demands but it’s all “the art of the deal”. In the end, it will simply result in a better balancing of trade and the American automakers will be fine.
I agree on the principle. However, Trump’s base understands his goal is to put America First.
Trump forgot that both Canada and Mexico are American nations.
Most will never understand disruption as a tactic when there are so many other more “mature” and less means of achieving one’s goals. My guess is that one or more of his advisors whose stock portfolios have taken a hit lately, finally go in his head for a few minutes…scary place to be I’m sure…and convinced him that targeted tariffs are the better strategy. The man is not a genius…maybe a Guinness, but nowhere near genius status.
Will America be Trump’s 7th bankruptcy?
America went bankrupt when Obama ran up more debt than the first 44 presidents, combined.
You’re still alive Joe? How is Jill ?
I wonder how much Ford has to pay to Trump’s bank account to be exempt from tariffs.