Ford Parts Spared From Stacking Trump Tariffs With New Order

President Donald Trump has thus far imposed a variety of tariffs on imported goods – including automobiles, which are subject to 25 percent levies. Trump previously promised that he would be slapping 25 percent tariffs on imported auto parts by early May, a decision that prompted concerns from a number of automakers, including Ford, which warned that such a move would add billions in costs and result in layoffs and lost profits. As a result, Trump was reportedly considering giving the automotive industry more time to adjust their supply chains to compensate, and now, that’s precisely what he has done.

As expected, Trump has signed a pair of executive orders, giving automakers two years to boost the percentage of domestic content in their vehicles that are assembled in the U.S. before tariffs take effect. The action allows automakers to offset tariffs for imported parts used in domestically produced vehicles equal to 3.75 percent of the total MSRP of those models through April 2026, as well as 2.5 percent of U.S. production through April 2027. Imported vehicles are still subject to existing 25 percent tariffs that took effect last month, however.

This move was fully expected to happen following some ferocious lobbying by automakers, including Ford, and it was praised by CEO Jim Farley just yesterday. Farley said that “Ford welcomes and appreciates these decisions by President Trump, which will help mitigate the impact of tariffs on automakers, suppliers and consumers,” adding that the automaker “sees policies that encourage exports and ensure affordable supply chains to promote more domestic growth as essential.”

In the meantime, Ford has resigned to the fact that it will have to pay tariffs on imported automobiles that it sells in the U.S., which currently consist of four models – the Lincoln Nautilus, which is produced in China, as well as the Mexican-sourced Ford Bronco Sport, Ford Mustang Mach-E, and Ford Maverick.