For some time, President Donald Trump has threatened to impose 25 percent tariffs on automobiles imported from countries outside of the U.S., most recently, giving automakers a 30-day reprieve on those levies. However, Trump previously stated that the tariffs would take effect on April 2nd, 2025, though some recent reports indicated that he may wind up leaving certain industries out – including the automotive sector. That no longer seems to the case, as Trump has announced that a 25 percent tariff on imported automobiles is now set to take effect on April 3rd.
According to Automotive News, Trump signed an executive order that will impose new 25 percent tariffs on automobiles yesterday evening, and they’ll be joined by levies on imported parts including things like engines, transmissions, and electrical components no later than May 3rd. However, parts that comply with the existing United States-Mexico-Canada Agreement won’t be subject to the tariffs, at least, until the Commerce Department can establish a process that applies them only to non-U.S. content. This means that only the value of non-U.S. content in vehicles will be subject to tariffs.
Some have expressed concerns about these tariffs and their potential impact on the industry, as well as consumers, though it’s unclear how automakers like Ford will ultimately respond. Most have noted that it takes time to shift supply chains and production, with Blue Oval CEO Jim Farley stating that imposing these levies could cause “chaos” in the industry, though he also supports universal tariffs. Executive Chairman Bill Ford – who is visiting the White House this week to discuss the tariffs – has also called for them to be a bit more predictable.
In the meantime, Ford has taken actions to minimize the impacts of these tariffs, but it’s unclear if it will be able to move forward without raising the prices of at least some of its models – something that the lobby group Alliance for Automotive Innovation has expressed concerns over. Some United Auto Workers (UAW) represented Ford workers have also expressed concerns over how the tariffs might impact their jobs, though Trump’s goal with these tariffs is to bring more production to the U.S.
Comments
That senile old fool is pushing us into a recession.
Yep. I can’t believe people voted for this. 🤦🏽
The art of negotiation seems to have passed you by. Let the Donald do his thing and all will work out over time.
If you have any compassion for the younger generation you will realize that a recession is exactly what we need. It’s time to stop being selfish and we need the outrageous prices of the past 4 years to RECEED! Get it? That is the only way to keep the greedy unions at bay and encourage more industry here.
Please people ask yourself why does Ford manufacture vehicles in Mexico and China? Labor costs! So, while all you union loving people support unions Ford does not! So bring back manufacturing to the US! This will make US stronger!
working that high school education are we? Dont hurt yourself.
Why doesn’t Ford just make cars in America like they used to? Why do they cater to the Chinese and make the best cars there (Nautilus). I am glad Trump is implementing the 25% tariff. Let’s keep the jobs here Farley.
Just remember Don sold products made in China and employed undocumented aliens.