Trump’s promise to tax imported goods could spell trouble for US auto industry
Automakers face uncertainty as top-selling vehicles, such as the Ford F-150 truck, are sourced from around the globe
Few vehicles are as emblematic of the American auto industry’s might as the Ford F-150 pickup truck, the nation’s best-selling vehicle for over 40 years. But the F-150 is much less American than its image suggests. A fact that could present unique challenges for the company as Donald Trump moves to “make America great again”.
Only about 32% of its components are made in the US or Canada, federal data shows, and that could spell trouble if Trump’s proposed tariffs on imported goods are implemented. Even less of the F-150 Lightning electric truck is made in the US – about 24%, a Cars.com analysis of federal data showed.
The F-150’s price would almost certainly soar without some mitigation, industry observers say. Moreover, it would be virtually impossible to completely onshore its supply chain in short order – a process that could take many years.
The uncertainty around the truck is representative of the auto industry as a whole as it waits to see if Trump follows through on his promised blanket taxes on imported goods. Top-selling vehicles in the US are similarly sourced from around the globe, and the auto industry’s supply chain is “a complicated universe”, said Ivan Drury, director of insights with industry analyst Edmunds.