Ford Stock Surges Following China Tariff Deal

As Ford Authority reported yesterday, the U.S. and China reached a temporary trade deal that will effectively lower tariffs imposted on imported/exported goods from both sides for 90 days as each works to hammer out a more permanent solution. Prior to that deal, the U.S. and China were engaged in a bit of a trade war, but now, the U.S. will lower its tariffs on most imported goods from China from the current rate of 145 percent down to 30 percent, while China’s 125 percent tariffs on American goods will drop to 10 percent. As one might imagine, Ford stock – and the rest of the market – responded in a rather positive way to this news.

Following this bit of news on Monday, Ford stock rebounded to its highest level in more than a month yesterday, in fact, according to Yahoo Finance, reaching $10.55 per share during the course of the day. The Blue Oval wasn’t alone in that regard, as shares of General Motors, Tesla, and Stellantis also surged – not only because of news pertaining to China tariffs, but also, the belief that more deals are coming that will ease cost pressures on the automotive sector as a whole.

“We believe autos [are] next on the docket for the trade talks and this positive US/China news will give the market hope that Trump and [Treasury Secretary Scott Bessent will] now focus on the 313 [the Big Three auto makers] and U.S. auto industry,” said Wedbush analyst Dan Ives. “We would expect an update over the coming weeks.” It is worth noting that Biden-era tariffs of 100 percent on imported Chinese EVs remain intact, which is also true of 25 percent U.S. tariffs on imported automobiles and select parts imposed by Trump.

As Ford Authority previously reported, The Blue Oval opted to halt exports of the Ford F-150 Raptor, Ford Mustang, and Lincoln Navigator to China following the implementation of tariffs on that country, though it builds several other models domestically for that market. As for the Lincoln Nautilus – which is assembled in China and imported into the U.S. – it hasn’t yet been impacted, though Lincoln President Dianne Craig did recently admit that pricing could increase as a result.