Following the implementation of an additional 10 percent tariff on China and 25 percent levies on imported steel and aluminum, automakers are bracing for 25 percent tariffs on goods coming from Canada and Mexico, which are currently slated to take effect on April 2nd following a 30 day reprieve for that industry. Many expect these new tariffs to increase the cost of products such as automobiles, but Ford has been working to mitigate their impact in that regard – efforts that continue in various 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, according to Automotive News. Ford is “strategically stockpiling components where it is cost-effective and parts that are not pending engineering changes,” supply chain chief Liz Door told suppliers in a recent memo.
“As the situation continues to develop, we require all suppliers to continue shipping parts in accordance with existing contractual terms, including pricing and delivery schedules,” Door added. “We ask that you continue to utilize your best commercial efforts and encourage your team to take all possible measures to minimize the impact to your business and Ford.” Door noted that Ford is also taking a closer look at improving efficiency via its logistics routes and border crossing plans, too.
At the moment, it’s unclear how these tariffs may impact Ford – CFO Sherry House has stated that the automaker isn’t too terribly worried about aluminum and steel levies, since it sources most of those materials domestically, but another recent report claims that they could face increased production costs as a result. Meanwhile, most in the automotive industry have simply called for future tariffs to be a bit more predictable – a list that includes Ford Executive Chairman Bill Ford – as shifting supply chains and production can take years.
Comments
Trump’s tariff program has taken abject stupidity to an all new level. Auto makers build cars in Canada (and Mexico) to save money. Canada has universal health care thus saving the manufacturers big money. Plus the Canadian dollar is less then 70 cents US for another big saving. AND Trump signed the USMCA auto pact into effect in 2020 with it running until 2026.
They just simply need to bring the FORDS back to Kansas City Missouri where the school plant is idle. Here and just waiting. PROBLEM SOLVED!!!!
I’ve never heard of a “school plant” in Kansas City; where is it located? My F150 was built (assembled) at the Claycomo plant, less than 30 miles from where I live.
Trump is trying to bring jobs back into the United States. Hopefully built better. And if better quality should cost more. I guess nobody notices all the empty buildings and impoverished cities since trade moved to other Countries. Back in the day there were blocks of department stores and all kinds of vehicles on the lots- That still run today . We were called lot lizards back then, according to an ex car salesman in the family. : )