Bank Of America Lowers Ford Stock Price Target Over Trump Tariffs

The tariffs introduced by President Donald Trump have landed many automakers, including Ford, in a sticky situation. With 25 percent tariffs on imported vehicles, Ford stock was already being downgraded by various investment firms. Unsurprisingly, that trend is continuing with Bank of America lowering its price target for Ford stock.

According to Tipranks, Bank of America lowered Ford’s price target from $15.50 to $14, but is keeping a Buy rating on the automaker’s shares. On the bright side, Q1 results for production and sales came in better than anticipated, which should positively affect Ford’s results moving forward.

Even so, the level of concern regarding tariffs is still “extremely elevated,” while discussions around tariffs is “far from being settled,” according to industry experts. That uncertainty will likely continue to push companies toward suspending or pulling guidance completely.

For its part, The Blue Oval (and its crosstown rivals, Stellantis and General Motors) is reportedly fully resigned to paying tariffs on imported vehicles, as well as major vehicle components. Unsurprisingly, the automaker has lobbied the Trump administration to reduce levies or remove them completely from low-cost parts made in countries with cheaper labor.

Parts produced by Ford that are subject to tariffs include essentials like video screens and sheaths of electrical wiring, which are typically produced in Mexico, a country where average wages are typically much cheaper than those paid to workers in the U.S. Automakers argue that shifting production of those parts to America will result in sharp price increases for new vehicles, which have already soared to new record heights over the course of the past few years.

For now, it’s not clear how automakers will respond to these tariffs, particularly concerning the increase in the price of new vehicles. In fact, Ford CEO Jim Farley told workers that they stand to be impacted “significantly.”