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Home Front: Politix

Fury as Trump punishes America's biggest carmaker [Ford] in friendly fire disaster

2025-08-03

[Daily Mail, where America gets its news] Ford builds more cars in America than any other automaker — but instead of reaping the rewards, it’s being hit hardest by new trade rules.

Detroit-based Ford assembles 80 percent of its US-sold vehicles domestically. But it still relies on imported parts and aluminum — which now face punishing duties.

Under new trade deals with Japan, the EU, and South Korea, many imported goods are subject to a 15 percent tariff. That includes cars from Ford's big rivals Toyota, VW and Kia.

That rate is far below the 25 percent tariff applied to auto parts and the 50 percent tariff on aluminum introduced this spring.

The result is that Ford’s American-first strategy is becoming uncompetitive.

Ford expects to pay $2.5 billion in tariffs over the next year alone.

'Ford has more reason to complain,' said Bernstein analyst Daniel Roeska.

'If you're now lowering tariffs and letting more cars and content flow into the U.S., that relatively disadvantages Ford more than others.'

'I admire Ford,' Treasury Secretary Scott Bessent said in a recent CNBC interview.

Bessent said he hopes to iron out the 'idiosyncratic' burdens that current tariffs are placing on the company by cutting a deal with Canada to address the cost of importing aluminum.

Nonetheless the situation as it currently stands is a direct contradiction of what Trump has said he aims to achieve with tariffs.

The Presidents has repeatedly claimed he wants to bring back a golden era of Made-In-America manufacturing with the car industry as a cornerstone.

US carmakers have welcomed the support after years of struggling to compete with foreign rivals who can take advantage of lower labor costs and less strict regulations.

'For decades now, it has not been a level playing field for U.S. automakers globally, with either tariffs or trade barriers,' General Motors chief executive Mary Barra said earlier this year.

'So I think tariffs is one tool that the administration can use to level the playing field.'

However, the tariffs have now made things more difficult and more expensive.

Automakers have been hit by the steel and aluminum tariffs as well as direct duties on auto parts.

Furthermore in the previous era of the North American Free Trade Agreement businesses such as GM, Ford and Stellantis invested heavily in manufacturing in Mexico and Canada.

Therefore there are costs to untangling all that. Ford made the right call to invest in Mexico and Canada under previous conditions — did they complain then, too? — and now they will have to make investments under the new conditions. That is the lot of a company that sources best price wherever it might be found around the world. The whole point is to encourage seeking domestic suppliers, even if they now need to be created.

Both countries have been swept up in Trump's roiling trade war with temporary tariffs, threats and U-turns causing chaos for entire industries.

The storm does not appear to have passed either with Trump last night unexpectedly raising Canada's tariff rate to 35 percent.

Mexico's rate currently remains at 25 percent for the next 90 days.

The knock-on effect for consumers has been an increase in sticker prices from both domestically made and imported cars.

However, there are also extended cost shocks as businesses claw back profits by removing cheap financing deals.

Posted by:Skidmark

#3 Steel company CEO exposes major manufacturing shift the mainstream media is missing

Posted by: Skidmark 2025-08-03 10:58

#2 Henry Ford, Henry Ford, I've heard this name somewhere.

Posted by: Grom the Affective 2025-08-03 02:27

#1 Obama Foundation adds outgoing Ford Foundation president to board of directors

Posted by: Skidmark 2025-08-02 13:52

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