Trump May Exempt Ford, Automakers From Some Tariffs

Tariffs imposed by the Trump administration have definitely stirred the pot in the automotive world. Automakers like Ford have been subject to 25 percent tariffs on vehicles and components that are built outside of the U.S. and imported, making business difficult for The Blue Oval and others. But there might be some light at the end of the tunnel, as President Trump is considering cutting Ford and its peers some slack from said tariffs.

According to a recent report from CNBC, Trump is planning on tariff exemptions for auto parts imported from China. The tariffs were ostensibly issued to curb fentanyl production, along with levies on steel and aluminum. That exemption, if implemented, would be separate from the 25 percent tariffs on imported vehicles, along with the 25 percent tariffs on imported auto parts.

Trump has already given companies a break from reciprocal tariffs, which would force companies with production facilities  to pay up as part of the plan. Additionally, further exemptions would prevent “stacking” from various tariffs on things like steel and aluminum, a welcome prospect for Ford and other automakers.

“President Trump has indicated an openness to reconsidering the administration’s 25 percent tariffs on imported automotive parts – similar to the tariff relief recently approved for consumer electronics and semiconductors,” a group representing the automotive industry wrote in a letter to Trump. “That would be a positive development and welcome relief.”

For its part, Ford isn’t currently feeling the heat of these tariffs as much as some of its rivals are. That’s because the majority of Blue Oval vehicles are produced in the U.S., as are a good chunk of its parts. Trump has previously considered killing off the tariffs on lower-cost parts, before, but had not taken action on any exemption. That said, Ford may still be forced to raise its prices in June to compensate if these tariffs are still in effect then.