Ford Motor Company (NYSE: F) saw its stock price plummet 5.15% in after-hours trading on Wednesday following President Donald Trump's announcement of new tariffs on imported vehicles. The sharp decline came as investors reacted to the potential impact of these tariffs on the auto industry.
In a press conference held late Wednesday, Trump revealed plans to impose a 25% tariff on all cars not made in the USA, with the new policy set to take effect on April 2. The President stated, "We're going to go with the tariffs on cars," signaling a significant shift in trade policy that could reshape the automotive landscape.
While Ford produces a substantial portion of its vehicles domestically, with about 80% of its U.S. sales coming from American-made cars, the company still relies on global supply chains and imports some models. The new tariffs could potentially increase costs for Ford and other automakers, putting pressure on profit margins or forcing price increases that could dampen consumer demand.
The broader auto industry also felt the impact of the announcement, with General Motors shares dropping 3% after hours and other automakers experiencing similar declines. The move has sparked concerns about potential retaliatory measures from trading partners and the overall effect on the global automotive market.
As the April 2 implementation date approaches, investors and industry analysts will be closely watching for more details on the tariffs and any potential exemptions or negotiations that could mitigate their impact on companies like Ford.
