Thus far, tariffs imposed by the Trump administration have impacted the prices of certain goods, including automobiles – at least, to some extent. Some automakers have raised prices as a direct result of tariffs, though others – including Ford – haven’t taken too much action in that regard, save for imposing modest increases on its trio of Mexican-built models. Now, automakers are dealing with new tariffs imposed on certain steel and aluminum automotive parts as well.
Along with goods used in railcars, imported appliances, and other items, the U.S. Commerce Department has announced that it will raise tariffs on certain imported automotive parts for exhaust systems and the electrical steel used in EVs, according to Reuters. In total, 407 different product categories are being added to the list of steel and aluminum products covered by sectoral tariffs, with a 50 percent levy imposed on any such content contained within those products, plus the country-specific rate for non-steel and aluminum content.
It’s estimated that these new tariffs covered what totaled $200 billion in imports last year, and are expected to increase the overall effective tariff rate by around one percentage point. Regardless, foreign automakers have asked the Trump administration to not add these parts to the sectoral tariff list based on the fact that the domestic U.S. steel and aluminum industry currently doesn’t have the capacity to handle demand.
Ford has been working with its suppliers to try and minimize the impact of tariffs, but still wound up losing $800 million in Q2 2025 as a result of those levies. Back in May, the automaker announced that it expects tariffs to have a minimal impact on pricing in the second half of the year – around 1.0-1.5 percent. As Ford Authority previously reported, The Blue Oval has increased the prices of three of its imported models sold in the U.S. as a response to these tariffs – the Ford Maverick, Ford Bronco Sport, and Ford Mustang Mach-E (all of which are assembled in Mexico), but not the Lincoln Nautilus, at least, for now.
Comments
No wonder he’s such a failure when it come to business…first you have to understand how the operate. Guess he never made it that far.
WOW! 1 percent!!! I can’t believe it!!! Let’s build everything overseas!! FJB!
Thanks to the 49.9% who voted for the 34 time convicted felon! He used you like a dirty rug or a Saturday hooker! Now we all suffer for your ignorance. He is no more than a snake oil peddler!