As Ford Authority reported last week, both Ford and General Motors have been lobbying President Donald Trump to move forward with plans to impose a 25 percent tariff on imported medium- and heavy-duty trucks, which is something that Stellantis is currently asking the administration to waive or soften. The reasoning behind this split pertains to the fact that Stellantis builds its medium-duty Ram trucks in Mexico and sells them in the U.S. Now, Trump has opted to move forward with that plan.
According to Reuters, Trump has indeed elected to impose a 25 percent tariff on all medium- and heavy-duty trucks imported into the U.S. starting in November, levies that were previously expected to begin this month. The idea is to protect domestic manufacturers from “unfair outside competition” in the realm that includes everything from delivery trucks to garbage trucks, public utility models, transit, shuttle, and school buses, plus semi-trucks and other heavy-duty vehicles.
The move certainly stands to impact Stellantis, which builds its medium-duty Ram trucks in Mexico and sells them in the U.S. Ford was reportedly arguing that forgoing these tariffs would give Stellantis an unfair advantage in terms of costs, given the fact that it and GM build those same trucks in the U.S. using pricier labor. GM also reportedly argues that if Stellantis was to receive a break, it would lead to other automakers asking for exemptions on tariffs, including itself, given the fact that certain Chevy and GMC pickups are built in Mexico, too.
“Ford appreciates the Trump administration’s recent direction on heavy trucks, which supports our shared goal of growing the America auto industry and U.S. manufacturing,” the company said in a statement. “This is a really big deal for our country and for Ford,” Farley said in a previous interview when discussing these new tariffs. “We have a lot of competition from overseas and a 25 percent tariff would be a really big deal.”
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