Overview
- President Donald Trump activated a 25% tariff on heavy-duty trucks imported into the U.S. starting October 1, citing protection of domestic manufacturers.
- Ford CEO Jim Farley said the policy is a “really big deal” for the company and the industry, estimating a $2 billion headwind that he says will restrict future investment.
- Although Ford assembles heavy-duty trucks in Louisville, Kentucky, and Avon Lake, Ohio, Farley noted reliance on foreign-made parts that face tariffs he cited at 25% to 70%.
- Farley said Ford is in ongoing discussions with the administration on possible relief for parts costs and expressed optimism about finding a solution, while stressing the need for supply-chain flexibility.
- Ford shares fell about 1.1% on Tuesday, reflecting a modest negative market reaction to the tariff development.