Trump’s Tariff on Imported Cars Could Boost Ford’s EV Strategy

In a significant move impacting the automotive industry, President Donald Trump announced a 25% tariff on imported cars and major automotive components, effective April 2.

This decision has sent ripples through the market as manufacturers scramble to grasp its implications. However, it could also present a unique opportunity for automakers like Ford, which is actively investing in U.S. production capabilities.

Ford’s new BlueOval SK battery factory, a joint venture worth $9.63 billion with South Korean battery leader SK On, is set to begin operations by the end of the first quarter.

F-150 Lightning to Gain Advantage as Tariffs Favor U.S. Producers

This facility, located in Kentucky, will produce over 120 gigawatt-hours of battery capacity annually and create more than 7,500 jobs. The production readiness of this facility coinciding with the tariff implementation could bolster Ford’s competitive edge in the EV market.

As the new tariffs could potentially offer manufacturers who have invested in U.S. production a leg up, the F-150 Lightning is expected to benefit significantly. The BlueOval SK factory will soon supply batteries to the Dearborn manufacturing plant, allowing Ford to maintain a pricing advantage over competitors, particularly on electric vehicles within the same price range.

In contrast, Ford’s Mustang Mach-E has recently faced challenges, losing market share to newer models like the Hyundai IONIQ 5 and Porsche Macan EV. Despite being more popular than its gas-powered counterpart, the Mach-E’s early allure appears to be waning. However, Ford is exploring possibilities including an update or even a next-generation version, as they have ample production capacity available.

Additionally, Ford is actively promoting its electric vehicle lineup with offers such as 0% financing and bonus cash, aiming to attract buyers before the impending tariff changes take effect. As the automotive landscape shifts, all eyes will be on how Ford navigates these challenges and opportunities.