Ford Backed Group Supports Rollback On Trump Tariffs

As Ford Authority reported yesterday, U.S. President Donald Trump just revealed that he’s considering potential exemptions on tariffs for imported automobiles and associated parts in an effort to give automakers more time to shift production and supply chains to the U.S. – something that most have said they are willing to do, but also admit that it will take a bit of time to do so. Now, one Ford-backed group has come out in support of such a move as well – the American Automotive Policy Council (AAPC).

“We share the President’s goal to increase American automotive production, and we appreciate the ongoing dialogue with the Administration,” AAPC said in a statement. “There is increasing awareness that broad tariffs on parts could undermine our shared goal of building a thriving and growing American auto industry, and that many of these supply chain transitions will take time.”

Trump imposed a 25 percent tariffs on imported vehicles earlier this month, and also announced plans to slap the same sort of levy on parts coming from other countries no later than early May. However, Ford has been lobbying the Trump administration to reduce or remove similar tariffs set to be placed on low-cost parts such as sheaths of electrical wiring made in countries using cheaper labor for some time now, arguing that such levies could cost it “billions,” prompting layoffs and major profit cuts.

Those tariffs would also apply to components that don’t comply with the current United States-Mexico-Canada Agreement, such as engines, transmissions, and electrical components, but Ford has largely resigned to the fact that it will have to pay 25 percent tariffs on vehicles it imports into the U.S., as well as major components. Trump later excluded certain industries and items from these tariffs, but the automotive industry wasn’t spared, leaving those companies scrambling to mitigate their effects.