At the moment, there are many uncertainties revolving around potential tariffs placed on imported goods by the Trump administration, uncertainties that have drawn the ire of some automotive executives. At the moment, President Donald Trump has imposed tariffs on imported steel and aluminum, and has added an additional 10 percent levy on Chinese goods, with plans to slap a 25 percent tariff on imported automobiles and other goods in early April. As it works to minimize the potential impact of these tariffs, Ford is now looking at its supply chain.
According to Automotive News, Ford – along with its Detroit Big Three counterparts, General Motors and Stellantis – is reportedly talking to suppliers and working to decrease the “dutiable value of their components,” which is critical as there’s much uncertainty pertaining to what parts will or won’t qualify for free trade amidst the implementation of various tariffs. Under the current United States-Mexico-Canada Agreement (USMCA) that replaced NAFTA and went into effect in 2020, duty costs for imported parts outside of the trade pact are subject to a tax of 2.5-6 percent, much lower than a 25 percent tariff and likely costs those companies don’t want to absorb.
“Suppliers will make a cost-benefit analysis, as in what’s the cost of the supply chain move or change compared to the cost of just paying what would have been a relatively low duty under USMCA,” said Mitchell Zajac, an automotive attorney at law firm Butzel Long. “There’s an equation where you can build in five percent or 2.5 percent duty into your margins or into your cost, but the supply chain and automotive industry doesn’t carry 25 percent margins. So that hit is significant.”
At the moment, it isn’t terribly clear how these tariffs – which aren’t slated to take effect until early April – will impact Ford, specifically. CEO Jim Farley has previously spoken out against tariffs on Mexico, specifically, as the automaker builds three models there that are sold in the U.S. Ford CFO Sherry House later added that the company doesn’t expect to be impacted much by steel and aluminum tariffs, since it gets most of those materials from domestic suppliers, but a recent report claims that it will impact the cost of production, regardless.
Two recalls were issued in response to the problem.
It's been kind of a "meh" vehicle for them.
Ford has already partnered with some big companies in its recent past.
Featuring a host of off-road-ready upgrades, too.
Potentially announcing new models.
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Ford could just source all of their parts from the USA and they would not have to worry. You know, like they used to.