Shortly after taking office in January, President Donald Trump announced that he planned to impose a 25 percent tariff on goods imported from Canada and Mexico, and in the ensuing weeks, added that he wanted to add similar levies to all automobiles imported into the U.S., regardless of country. Since then, Trump has delayed the implementation of those tariffs on a couple of occasions as negotiations remain ongoing between the U.S. and other countries, but the President also set a start date of April 2nd not too long ago. Now, it’s possible that Ford and other automakers may not have to worry about those tariffs, after all.
As Ford Authority reported yesterday, Trump is allegedly mulling the idea of imposing more targeted tariffs, rather than blanket ones, particularly as it pertains to reciprocal tariffs. Trump reportedly won’t slap additional tariffs on countries that don’t place such levies on goods from the U.S., however. Now, Reuters is essentially reporting the same thing, after Trump stated that he would impose tariffs on autos, pharmaceuticals, and aluminum in “the very near future,” though a White House official added that these actions are “TBD (to be determined) and at the president’s discretion.”
Thus, it’s unclear if Trump will impose tariffs on imported autos as previously promised, and it remains possible that he may choose to delay their implementation again as well. In the meantime, the President has made it clear that companies choosing to invest in moving manufacturing operations to the U.S. can avoid those levies, and some have responded. Most recently, Hyundai announced that it will invest $21 billion in the U.S. to boost its manufacturing footprint there – $5.8 billion of which will go to a new steel plant in Louisiana.
Thus far, Trump has imposed tariffs of 20 percent on Chinese goods, 25 percent on imported steel and aluminum, and 25 percent on imports from Canada and Mexico that do not comply with the current North American trade agreement. As for Ford, its executives have simply asked for tariffs to be a bit more predictable, as The Blue Oval is working to minimize their potential impact. 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
Who cares at this point? Everyone has heard the story of the boy who cried “wolf” too many times. I think we’re there.
Bring them back to the usa. Or pay tariff
Why make them in Mexico make those for south American in Mexico not the usa market
Being a man that purchases Ford products I. Might change brands because of 2 facts no Lincoln town car ……I can get Japanese and European luxury cars that are made in the usa I don’t want a car that’s not made by a usa worker wakeup
Totally opposite of you, won’t buy anything assembled in US. Japanese auto workers actually care about doing a good job. Go watch some assembly videos.
And what exactly was YOUR contribution to ANY product foreign or domestic?
American made vehicles are overpriced
Businesses hate uncertainty more than anything. You may as well rename this clown President uncertainty. His authority to levy tariffs needs to be revoked immediately. He is erratic and childish. I truly think dementia is setting in.
Clown is definitely the right description. Some jobs (ones that don’t need any or little iq ) can be done where expected labor rates are cheaper. Saving the manufacturing a lot of money and bringing your products to market at a lower price. But Trump, being a rich guy doesn’t understand that. Not everything can be produced in a country that expects to be paid a living wage.