The new US tariffs are significantly impacting the global automotive market. Strategic plans of major automakers are being reassessed.
Market Changes Under Tariff Influence
The introduction of new tariffs has led to a decline in stock prices for major automakers. US companies like General Motors and Ford experienced drops of 5–8% in early trading. European and Asian manufacturers also saw declines, with shares of Valeo, Stellantis, and Volkswagen falling by 6.6–9%, and Toyota, Nissan, and Honda by over 5%.
Ford Strengthens Domestic Production
Ford is countering the impact of tariffs by relying on its strong domestic production. It has the largest manufacturing footprint with a substantial unionized workforce in the US, prominently producing the F-150 model. Ford plans a two-to-three-month adaptation period and is focusing on its EV strategy with an affordable lineup by 2027.
Long-term Impacts on the Auto Industry
The tariff policy is expected to have significant effects on the global automotive industry, causing supply chain disruptions and price increases. Nations like Canada and Mexico are threatening retaliatory measures, and the EU is preparing proportional responses. Economic forecasts suggest a decline in EU exports, raising risks of a trade war.
The new US tariffs create uncertainty and necessitate strategic shifts in the global automotive industry. Ford, relying on domestic capabilities, hopes to mitigate impacts and maintain market positions.
