For years, Ford has proudly waved the “Made in America” flag, assembling most of its vehicles right here in the U.S.
But now, that patriotic manufacturing model isn’t being rewarded—it’s being penalized.
Instead of benefiting from trade protections, Ford is finding itself squeezed harder than its foreign rivals, thanks to a complicated tangle of new tariffs and shifting global trade rules.
Ford Builds at Home but Pays Abroad
Ford produces a whopping 80% of its vehicles for the U.S. market within America’s borders—more than any other automaker.
But that doesn’t make it immune to the reality that many car parts and essential materials, like aluminum, still come from overseas.
And that’s where the trouble starts.
New Trade Deals Hand Rivals an Advantage
Recent trade agreements with Japan, South Korea, and the EU have dropped the tariffs on some foreign-made cars and components to just 15%. That might sound like a win for free trade, but it creates a strange imbalance.
Ford now pays a painful 25% tariff on imported auto parts and a sky-high 50% duty on aluminum.
That’s a big blow, especially when foreign automakers like Toyota, Volkswagen, and Kia are getting smoother access to the U.S. market at a lower cost.
Ford Faces a $2.5 Billion Tariff Bill
The math isn’t pretty. Ford estimates it’ll fork over $2.5 billion in tariffs just over the next year—and that puts it at a steep disadvantage compared to its foreign competition.
As analyst Daniel Roeska from Bernstein put it, “Ford has more reason to complain.
Lowering tariffs for everyone else while Ford absorbs high duties hurts them the most.”
Even the Treasury Secretary Sees the Issue
Even within the administration, there’s recognition that something’s off.
Treasury Secretary Scott Bessent praised Ford during a CNBC interview, calling their burden “idiosyncratic” and suggesting there’s room for negotiation.
He floated the idea of a new deal with Canada to reduce the cost of importing aluminum.
But for now, the current tariff structure seems to contradict everything President Trump says he’s trying to achieve.
The Made-in-America Promise Is Backfiring
Trump has consistently said he wants to bring back a golden era of American manufacturing—with the auto industry at the center of that revival.
And while U.S. automakers have welcomed the tough stance on global trade, it’s starting to backfire.
Mary Barra, the CEO of General Motors, spoke about the uneven playing field earlier this year, saying:
“For decades, it has not been level for U.S. automakers. Tariffs can be one way to even that out.”
But at this point, tariffs are piling up costs for the very companies they were meant to protect.
U.S. Automakers Are Getting Hit from All Angles
Beyond auto parts and aluminum, the broader steel and manufacturing supply chains have also been hit with tariffs, driving up costs.
And the auto giants—Ford, GM, Stellantis—who invested in manufacturing across Mexico and Canada under the previous NAFTA deal, are now getting whiplash from Trump’s ongoing trade moves.
Temporary tariffs, policy reversals, and surprise announcements have rattled the entire industry.
Trump Suddenly Cranks Up Tariffs on Canada
In another surprising twist, Trump announced a sudden increase in Canada’s auto tariff rate to 35% just last night.
That’s bound to rattle supply chains even more.
Mexico, for now, remains at a 25% rate, but only for the next 90 days—after that, who knows?
Consumers Are Feeling the Squeeze
These trade decisions aren’t just hurting carmakers—they’re reaching your wallet too.
Prices are climbing for both American-made and imported cars, and automakers are pulling back on things like low-interest financing deals to recover lost profits.
The end result? Car buyers are facing a perfect storm of higher sticker prices and fewer incentives.
What Comes Next?
The reality is, Ford’s all-American strategy is being punished in today’s trade landscape.
With billions in tariff costs looming, shifting trade deals, and no clear resolution in sight, the automaker finds itself stuck between loyalty to U.S. manufacturing and the harsh economics of global trade.
Whether the administration adjusts the rules—or lets the pressure keep building—remains to be seen.
