Ford Lobbying Trump Admin To Reduce Tariffs On Low-Cost Parts

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 on April 3^rd, 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 3^rd. Ford has been working to mitigate the impacts of those tariffs for some time, and now, those efforts continue – specifically, as it pertains to low-cost parts.

According to Bloomberg, Ford – along with General Motors and Stellantis – is lobbying the Trump administration to exclude some low-cost components from the upcoming 25 percent tariffs, an ask that has been presented in meetings not only at the White House, but also, the U.S. Commerce Department and the office of the Trade Representative. The report notes that the Detroit Big Three have stated that they’re willing to pay tariffs on completed vehicles built outside of the country, but are concerned that tariffs on certain parts will add “billions” in costs, prompting layoffs and major profit cuts.

As for what parts automakers are looking at, specifically, this report mentions things like sheaths of electrical wiring, which are generally made in places like Mexico, where wages are far lower than 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.

In the meantime, it’s unclear how automakers will respond to these tariffs, at least, as it pertains to increasing the prices of new vehicles, though Ford CEO Jim Farley told workers that they stand to be impacted “significantly.” A recent report claimed that Trump warned Ford, General Motors, and Stellantis not to raise prices in response to these new tariffs on a call that Farley was part of. However, when asked about foreign automakers potentially raising prices, Trump said “no, I couldn’t care less, because if the prices on foreign cars go up, they’re going to buy American cars.”