This week, US President Donald Trump has imposed rates on almost all trading partners in the country, who influence almost every industry.
This includes the automotive sector, which has complex global supply chains to maintain production.
Bill Ford – executive chairman of Ford – said with media in Australia, said that his company has less reason to worry about the rates compared to the competition.
“First of all, we have the largest American footprint of every OEM, and that brings us in reasonably good shape compared to many others,” Ford said at the unveiling of the Ranger Super Duty.
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“We have been around 122 years old, and over the 122 years, all over the world, we have every kind of political regime, every kind of economic unrest – depression and recessions – and we always come out.
“I experienced nine major crises in my career, and every time it felt like it was existential, and every time we came out, went on and you go to new heights.
“This will certainly adjust something.
“But we still work because of all the implications of this, because as you can imagine, this has tails far in our supply chain all over the world. There is still a TBD for us on some of the finer points.
“We are going to work very closely with the administration. The good news is that we have a big voice in America and in American industry the administration listens to us, and we will work with them as this is clarified.
When asked whether the rates would have consequences, Mr. Ford said that it was “too early to tell”.
“We just have to keep taking a step back and breathing deep and realizing that the footprint we have all over the world is a huge advantage for us, and I don’t think this is changing.
“I love our position as a company, both geographically and productive and wise, and wise, with a huge choice for our customers.”
While Ford produces many vehicles in the US, it also imports numerous vehicles for its home market. These include the Bronco Sport, Maverick and Mustang Mach-E from Mexico, as well as the Lincoln Nautilus from China.
25 percent rates apply to vehicles imported into the US from 3 April with rates for components that will apply from 3 May, except those from Canada and Mexico that meet the free trade rules of the United States-Mexico-Canada agreement (USMCA).
Chinese entry is confronted with an extra rate of 34 percent on top of the existing 20 percent duty.
MORE: Mutual rates for US trading partners will have ‘ripple effects’ on Australia
MORE: Donald Trump to hit vehicles that were built outside the US with a historical rate
