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 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. Interestingly, however, it doesn’t seem as if Ford plans to fight these tariffs, at least, as it pertains to imported vehicles.
According to a report from Bloomberg, Ford – along with General Motors and Stellantis – “have conceded that they’re willing to pay tariffs on completed cars and large components like engines and transmissions.” However, the Detroit Big Three are also concerned about the impacts of tariffs on other kinds of parts, or more specifically, low-cost components that are produced in other countries for a variety of reasons.
As Ford Authority previously reported, those parts include things like video screens and sheaths of electrical wiring, the latter of 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.
As such, Ford and its rivals are 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.
