Tesla, Ford, GM In Focus: After Tariffs On China, Mexico, And Canada, Trump Now Eyes Auto Industry For Next Move – Ford Motor (NYSE:F), General Motors (NYSE:GM)

Tesla, Ford, GM In Focus: After Tariffs On China, Mexico, And Canada, Trump Now Eyes Auto Industry For Next Move – Ford Motor (NYSE:F), General Motors (NYSE:GM)

PresidentĀ Donald Trump hinted at the possibility of imposing tariffs on automobiles, continuing his aggressive trade policy.

What Happened: Trump, during an executive order signing session on Friday, suggested that auto tariffs could be implemented as early as April 2,Ā reportedĀ Reuters.

ā€œI would have done them on April 1… But we’re going to do it on April 2.ā€

This announcement follows a series of trade actions since his second term began on Jan. 20, including tariffs on all Chinese imports, delayed tariffs on Mexican and Canadian goods, and the initiation of tariffs on imported steel and aluminum.

Ford Motor Chief Executive Jim Farley took to X after Trump’s remarks, saying, ā€œWe applaud President Trump’s idea to look at all vehicle imports to the U.S., an important step forward.ā€

ā€œComprehensive trade policies are imperative to achieving the president’s vision to strengthen the U.S. auto industry.ā€

Although Farley previously criticized steel and aluminum tariffs, saying it has added ā€œaĀ lot of costs and aĀ lot of chaos,ā€ and if prolonged, they could wipe out billions of dollars in industry profits.

See Also: Jeff Bezos-Backed Anthropic Fights US Proposal Blocking Google From Investing In AI Startups, Says It Would Benefit Rivals OpenAI, Mark Zuckerberg’s Meta

Why It Matters: Trump’s tariff measures aim to boost the competitiveness of American goods in global markets. However, they have sparked uncertainty among businesses, strained relationships with key U.S. allies, and fueled worries about rising inflation.

These tariffs have been a subject of concern for several industry leaders and politicians. Senate Minority LeaderĀ Mitch McConnellĀ (R-Ky.) recentlyĀ voiced his apprehensionsĀ about the potential price hikes and trade wars that could result from Trump’s aggressive tariff proposals.

These concerns are particularly relevant given the current state of the automotive industry. Automakers, includingĀ FordĀ F andĀ General Motors GM, have beenĀ facing significant uncertaintyĀ due to the proposed tariffs on imports from Mexico and Canada.

Last month, Trump also canceled the electric vehicle (EV) tax credits. Tesla Inc. TSLA rivals, includingĀ General MotorsĀ andĀ Ford, have beenĀ advocating for a gradual phase-outĀ of these incentives to mitigate the potential impact on jobs and the industry as a whole.

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Disclaimer:Ā This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photos courtesy: Tesla and Shutterstock

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