Last 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 today, 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. The Blue Oval has been taking steps to stockpile parts built in other countries before these tariffs take effect, but it seems as if at least one Ford dealer is, too.
According to Fox 5 News in San Diego, Perry Ford in National City, California, has begun stockpiling parts such as transmissions, brakes, engines, and spark plugs that are produced in other countries and imported into the U.S. as a way to help soften the blow of potential tariff-related price increases for its customers. The dealer notes that it believes the prices of both new vehicles and parts will go up as a result of the tariffs, and it’s also seeing an uptick in sales as a result.
“This will definitely impact the bottom line for dealerships, not just ours but everyone’s,” said Fernando Osorio, Director of Parts for Perry Ford. “I don’t think it’s going to be this immediate effect but it’s going to snowball. It will take a couple months before consumers start seeing that.”
As Ford Authority recently reported, The Blue Oval has seemingly accepted the fact that it will have to pay tariffs on vehicles and major components such as engines that it builds or sources in/from other countries. However, it and some rivals are also lobbying the Trump administration to exclude certain low-cost components from the upcoming 25 percent tariffs, as it’s concerned that such levies will add “billions” in costs, prompting a number of layoffs and major profit cuts.
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