Following U.S. President Donald Trump’s implementation of 25 percent tariffs on imported goods, some countries – including Canada – imposed retaliatory tariffs in response. Ford stood to be one of the most impacted automakers given the fact that the majority of its new vehicle sales in Canada rely on U.S. imports, though the automaker only currently builds a few parts, such as engines, in Canada that it uses in vehicles sold in the U.S. Now, it seems as if Ford may get some relief from these retaliatory Canadian tariffs, at least, under certain conditions.
According to Reuters, Canada will allow domestically-based automakers and manufacturers in specific sectors to import a select number of U.S.-assembled and free trade-compliant vehicles into that country free of the retaliatory tariffs. However, those companies must continue to produce vehicles in Canada for the local market, and finish planned investments in that country as well. “Our counter-tariffs won’t apply if they (automakers) continue to produce, continue to employ, continue to invest in Canada,” said Prime Minister Mark Carney. “If they don’t, they will get 25 percent tariffs on what they are importing into Canada.”
Ford doesn’t currently produce any vehicles in Canada, but is in the process of retooling the Oakville Assembly plant, which is slated to begin building the Ford Super Duty starting in 2026. The Blue Oval does currently assemble a variety of powerplants at the Windsor Engine plant and Essex Engine plant in Canada, however.
As Ford Authority reported earlier today, Trump also announced that he’s considering exempting automakers from potential exemptions on tariffs for imported vehicles and parts in an effort to give those companies more time to shift production and supply chains to the U.S. Ford has long argued that imposing 25 percent tariffs on imported parts could increase its costs by billions, potentially leading to sharp price increases for new vehicles.
Comments
The GOP must be SO proud of what their ‘Esteemed Leader’ has done to the automotive industry in North America. And China is sitting there ready and willing to fill the void.
This should certainly have Jim and the rest of the BoD sleeping well at night. Not only do they have to concern themselves with being competitive in the world marketspace, but now they have to try and figure out when the goal posts will move again, and how far. Great business practices. And that’s why Trump failed 6 time in business after his father left him millions…because he knows what he’s doing.