NEWSLETTER
Ford Motor's actions went down in the negotiation on the early Tuesday, extending their long and painful sliding in the last three years, after President Donald Trump announced new rates and warned that they could extend to the broader automotive industry.
Trump told journalists in Washington on Monday night that he would increase tariffs on 25%steel and aluminum imports, “without exceptions or exemptions,” as of March 12.
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The president added that together with his threat of imposing a 25% tax on all goods from Mexico and Canada, which postponed earlier this month, he was also watching tariffs on cars, pharmaceutical products and the semiconductor sector.
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The United States imports about 80% of its general aluminum needs from abroad, according to Morgan Stanley's estimates, while around a quarter of its steel comes from Canada and Mexico.
Ford (F) CEO Jim Farley, who spoke at a self -investment conference in Detroit, said that most of the new tariff and aluminum tariff ads could be absorbed from suppliers, the president's recent approach in import tasks had led to a significant interruption for the automotive sector.
Tariffs mean the highest prices of the car: Ford's Farley
“President Trump has spoken a lot about making our automotive industry in the United States stronger, bringing more production here, more innovation to the United States, and if this administration can achieve it, it would be one of the most characteristic achievements,” he said Farley
“Until now, what we are seeing is a lot of cost and a lot of chaos,” he added.
Ford predicted adjusted profits of between $ 7 billion and $ 8.5 billion for next year when he updated investors last week, but added that he had not included the potential impact of changes in tariffs or policies on perspectives.
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“From an operational point of view, we believe that a few weeks of tariffs are manageable given the rate and flow of our products,” Farley told investors on February 6. The Chief of Finance, Sherry House, added that having a precise effect would depend on the consumer's demand. , supply chains and the ability to quickly replace foreign manufacturing pieces with US substitutes.
But Farley also warned that “there is no doubt” that a 25% prolonged tariff in the goods imported from Canada and Mexico would have a “great impact on our industry, with billions of dollars of earnings from the industry eliminated and an effect Adverse in the United States.
“Tariffs would also mean higher prices for customers,” Farley added.
Ford has a long history in Canada, Mexcio
Ford began doing business in Mexico in the early 1920s, with its first online production installation in 1930 to make the iconic T. of the T.
His first Canadian floor, based in Windsor, Ontario, was established even before, in 1904, and had the task of producing his model A. Original A.
Ford now uses around 13,000 people in both countries, most of them in Mexico. Most of its workforce of 72,000 people is based on the US.
The global M&P mobility suggested that the average price of an car imported from Canada or Mexico could increase by $ 6,250, or 24%, to an average of $ 32,650 if Trump places the 25% tax in its place next month.
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In addition, around 3.6 million units, more than a fifth of all sales in the United States, were imported to the United States members in the US-Mexico-Canada Free Trade Agreement that Trump fooked in 2018 and It entered into force on July 1, 2020.
“The automotive industry is at a critical situation,” said Vice President of Global S&P forecasts, Michael Robinet.
“The proposed rates could not only inflate vehicle prices, but also interrupt production schedules, with estimates that suggest a potential decrease of 30% in the production of high exposure vehicles once the tariffs are enacted, even if it is only In the short term, “he added.
Ford shares in the last check marked 0.3% lower than $ 9.22. The action was out of 36% from mid -July until closing on February 10.
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