Earlier this week, U.S. President Donald Trump signed an executive order imposing a 25 percent tariff on all imported vehicles, which is set to take effect on April 3rd, 2025, after which the U.S. will place levies on imported parts that don’t comply with the current United States-Mexico-Canada Agreement, such as engines, transmissions, and electrical components, no later than May 3rd. In the wake of that announcement, Ford is touting the fact that most of what it sells in the U.S. is in fact made in America.
In fact, 80 percent of the vehicles that Ford sells in the U.S. are assembled in that country, totaling around 2.1 million units in 2024. Every single Ford F-Series truck is built in America in Michigan, Missouri, Kentucky, and Ohio, totaling around one million units, and Ford also employs around 57,000 hourly manufacturing workers in the U.S., too. On top of that, Ford’s U.S. dealer network employs over 170,000 people across nearly 3,000 locations.
It is worth noting that Ford does source some parts from Canada and Mexico for many of its vehicles that are sold in the U.S., including gas engines for the Ford Super Duty, so the automaker likely stands to be impacted in some way by these tariffs, at least. The automaker has been working to procure parts that comply with the existing USMCA as of late, however, as the U.S. Commerce Department works to establish a process that applies tariffs only to the non-U.S. content of those components.
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. The Ford-backed lobby group Alliance for Automotive Innovation believes that prices will go up as a result of the tariffs, while Barclays predicts that it will add around $400 to the production cost of every vehicle built.
Comments
Yes, but some of its most popular and most reasonably priced are not.
I can justify these tariffs if they are applied to all imports, even if assembled in the U.S. But we all know that Trump is doing this to protect Tesla and Elon Musk’s billions.
BS, is that why Musk is ranting against tariffs?
Why has the US been paying tariffs to China and other nations for decades and yet you mess your pants when Trump turns tables. Ford said it would add $400 to the price. That is to vehicles that are already above middle income affordability.
Jim Farley wants Americans to buy Ford Vehicles , but he wants employees in other countries to make the wages ! What happened to Henry Ford ‘s comments that the workers should make enough to Buy the autos that they were building ?
The operative words Some are Assembled in NOT, and IN NO WAY MADE in the United States of America!! Which means MOST of our Purchase Price of OVER $50,000.00 for each vehicle is going Outside of the United States to Countries that HATE the United States. Thank you FORD for supporting Other Countries rather than the Country you are selling MOST if not ALL of your Assembled in the US Vehicles.
In Ford’s recent move, they had an opportunity to make lemonade out of tariff lemons;
However, they chose a completely different path! To those paying attention, it’s clear that someone must take action regarding the trade imbalance and the US fiscal debt, now standing at many trillions. Ford, whose $ 400-per-vehicle tariff cost (estimated by Barclays Bank) could have been sold as American consumers stepping up to face the onslaught of unfair trade practices and deficit reduction. But FORD CHOSE to dig their heels in and squeal, protesting tariffs. What the recent moves appear to be is more political maneuvering and less business decisions! The status quo can’t continue!