Ford has embraced the "Made in America" slogan.
There's no question about this.
So why are all of Trump's tariff strategies crippling the company and putting it at a disadvantage?
Last week, Ford CEO Jim Farley said that Trump's tariffs will cost Ford "about $2 Billion this year"
The company took an $800 million tariff hit in Q2 alone.
The administration's deals with Japan, the European Union and South Korea set a 15% tariff rate, down from the 25% auto levy that went into effect this spring.
U.S. Auto CEO's were terribly disappointed in this change to only 15%
15% isn't a high enough tariff rate to motivate U.S. investment in the auto industry.
Every U.S. auto CEO is in agreement on this.
Yet Ford, which makes more vehicles in the U.S. than any other automaker, faces steeper tariffs on many parts as well as higher costs for imported aluminum, which is subject to 50% duties. Ford, which is one of the industry's biggest users of aluminum, buys the material from U.S. suppliers that pass on a chunk of their tariff costs.
In fact, the best selling pick-up truck in America, the F-150 contains 682 lbs. of aluminum.
Trump's tariff on aluminum was raised from 25% to 50% effective June 4th.
There's no question about this.
So why are all of Trump's tariff strategies crippling the company and putting it at a disadvantage?
Last week, Ford CEO Jim Farley said that Trump's tariffs will cost Ford "about $2 Billion this year"
The company took an $800 million tariff hit in Q2 alone.
The administration's deals with Japan, the European Union and South Korea set a 15% tariff rate, down from the 25% auto levy that went into effect this spring.
U.S. Auto CEO's were terribly disappointed in this change to only 15%
15% isn't a high enough tariff rate to motivate U.S. investment in the auto industry.
Every U.S. auto CEO is in agreement on this.
Yet Ford, which makes more vehicles in the U.S. than any other automaker, faces steeper tariffs on many parts as well as higher costs for imported aluminum, which is subject to 50% duties. Ford, which is one of the industry's biggest users of aluminum, buys the material from U.S. suppliers that pass on a chunk of their tariff costs.
In fact, the best selling pick-up truck in America, the F-150 contains 682 lbs. of aluminum.
Trump's tariff on aluminum was raised from 25% to 50% effective June 4th.