Ford has largely resigned to the fact that it will have to pay 25 percent tariffs on vehicles it imports into the U.S., but has also been lobbying the Trump administration to reduce or remove similar tariffs set to be placed on low-cost parts made in countries using cheaper labor. Trump later excluded certain industries and items from these tariffs, but the automotive industry wasn’t spared, leaving those companies scrambling to mitigate their effects. Now, it looks like Ford and its peers may get some sort of relief, after all.
According to Bloomberg, Trump is now considering potential exemptions on tariffs for imported vehicles and parts in an effort to give automakers more time to shift production and supply chains to the U.S. “I’m looking at something to help car companies with it. They’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time, because they’re going to make them here,” Trump said.
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. At the same time, uncertainties pertaining to what will be subjected to these levies is causing “chaos” in the industry, according to Ford CEO Jim Farley. At the same time, the tariffs have also prompted some companies – including Hyundai – to announce major investments in American manufacturing, too.
In the meantime, Ford is being impacted in a lesser manner by these tariffs than most of its rivals, given the fact that it assembles most of its vehicles in the U.S. and sources more parts from the same country than most. However, it is facing the biggest hit from retaliatory tariffs imposed by Canada, as it has the largest portion of Canadian new vehicle sales among all automakers there that rely on U.S. imports.
Comments
Does he even have clue? May, or may not, doesn’t sound like a plan. It sounds like deciding on a dinner selection in a fancy restaurant. No wonder the guy failed at running a business 6 times. Would a thought he would have learned something from those experiences…guess not.
Failed 6 businesses out of over 500 registered. Nice try, dolt.
Baloney. Dolt.
Don’t forget, he is the only person to bankrupt a casino.
It’s the changeup of the hour. Tired of this yet?
Just wait for four years and the tariffs will be removed by the next President. It will be cheaper than moving production which will increase prices even more.