President Trump’s stance on auto tariffs has been a topic of contention, particularly when it comes to cars made in the U.S. The President has confidently stated that these cars will face “absolutely no tariff,” but as we delve deeper, we realize that the situation is far more complex than he suggests.
Even the iconic U.S.-built Ford F-150 pickup truck, a symbol of American manufacturing, is not immune to the effects of potential auto tariffs. It is revealed that major components of the F-150 actually come from Mexico, Canada, and South Korea, countries that could potentially be impacted by the proposed tariffs.
In an insightful video, the Wall Street Journal deconstructs a Ford F-150 to provide a clearer understanding of Trump’s new tariffs and the concerns raised by automakers. The breakdown of the car’s parts highlights the intricate web of global supply chains that support the production of vehicles in the U.S.
One of the key challenges discussed is the feasibility of opening new plants in the U.S. as a response to the tariffs. Automakers are facing constraints in terms of time and resources, making it difficult to adapt to the changing trade dynamics.
Moreover, the potential economic impact of these tariffs is far-reaching and raises broader threats for the automotive industry. As tensions continue to escalate on the global trade front, automakers are warning that the measures put in place could ultimately backfire and have negative repercussions on the industry as a whole.
The WSJ’s detailed exploration of Trump’s auto tariffs sheds light on the complexities at play and the ripple effects that could be felt in the automotive sector. As the debate rages on, it becomes increasingly evident that the impact of these tariffs goes beyond individual companies or countries and has the potential to reshape the entire industry landscape.
Watch the video by The Wall Street Journal
Video “Trump’s Auto Tariffs: We Broke Down an F-150 to Explain Industry Impact | WSJ” was uploaded on 04/02/2025 to Youtube Channel The Wall Street Journal
China is the manufacturing leader and will eat the big 3. Tariffs hasten that process.
I love to read this silly stuff because they are talking to the crowd that doesn't know anything about how vehicles are made. First it's been a long time since the industry has needed any research and design so you can wipe that right out. Compared to older cars, there's very little metal on smaller cars it's all plastics. Engines are very small using very little parts. Some parts are even plastic like intake manifolds. Many ford's are so basic even if it has power windows, a/c and heated seats. I recently started rebuilding a cvt transmission and its surprising how little parts are in a new transmission. The time it takes now to assemble a car is probably 100 times faster than in the past. If you want a giant Ford f250 ofcourse it's more involved but building cars is very cheap and simple now. They are only concerned about trying to make profits of 90 percent because the materials are extremely cheap now compared to year's ago.
Trump did something? WSJ made a story about it? Let me guess, it’s a video agendasplaining how bad a decision it was….
I see this trump tariff strategy is purely ecological 😅
You think American made vehicles are janky now, hah, just wait.
WSJ making it sound like this is super complicated..😅 They will simply have to become more efficient to compete. Trucks, for instance, have been overpriced for years marked routinely thousands ABOVE MSRP.
But Trump said…. and he is the most successful businessman in the world, no-one know more about tariffs than Trump..smh
I don’t see the problem. You have to create incentives and disincentives to direct decisions and money where you want them to go.
You winnning yet trumpers
This is what happens when you send manufacturing jobs overseas to be built cheaper but using cheaper labor. At one time in history we had more jobs here than the billionaires wanted to keep all the profits.
Why can’t simple things like alternators and tires be American? I understand not everything can be made here but come on.
could it be easier to move production outside the US and turn us entities sales broker entities ?
Diaper Don and his demented tariffs!!!
So….NAFTA is canceled??
There is a bit of fake news here since auto manufacturers have stuffed the channel so full of unwanted cars and trucks that a small dip in output (from the effects of the tariffs)for a few months won’t effect an already struggling industry.
In my small town there once was a great flywheel and ring gear company. Wohlert special products. They employed hundreds. After nafta this once great 100 year American company is gone. Or mostly gone. The workers from my town were instructed to train Mexican workers. Now it’s called wohlert de Mexico. I am not joking look it up! But yeah naftas great!
This is really gaining control of China because these parts might be finished in Mexico or Canada but all really come from China. Will it be difficult to gather manufacturing back to America and reclaim those jobs? Sure, but it needs to be done.
Futures for Nasdaq are -1000 and -850 for Dow Jones. We are so cooked.
Trump will be gone in four years and the GOP with him, if this goes pear shape as many economists say it will. Then dems will dump most of the tariffs ( or the GOP will anyway post Trump if it fails). And I bet automakers, manufacturers and importers are weighing this all up. Why would you spend billions bringing your manufacturing to the US if the tariffs are likely gone in a few years. Just pass the added cost on to the consumers and weather the financial storm until then. If that’s their thinking, then this scenario is a self fulfilling outcome!
MAGA
It’s clear he’s doing all this for Elon Musk/Tesla. I was always a trump supporter but he’s now just Elon Musk’s puppet
I liked the comment, "It's the fast that eats the slow". I think that is very pertinent in today's world!
What this video fails to mention is that Ford is making record profits because they have overinflated prices primarily due to the demand from the influx of monetary stimulus. So they actually can lower their margins to reasonable levels like prior to the 2020 situation. Ford knows this but obviously doesn't want to lower margins because that will hurt their stock price. So they need to be economically forced using tariffs. Tariffs can be a way to force companies to bring their prices down by shocking the economy causing a recession. Yes their cost will go up but consumers will not pay so they must eat costs causing margins to drop. This will also cause the Fed to drop rates. Even Biden said companies can lower their prices. Personally I just wouldn't be playing in the market right now unless you are shorting.
Tariffs are used to protect Domestic industries = Trump wants US manufacturing industry to 'come home' = not rely of other countries + provide jobs at home. Tariffs are also used as bargaining chips = Trump's Art of the Deal".
US people need to think Long Term results, not short term political points scoring. BTW, I'm an Aussie and the USA economic health effects us greatly. 🧐
I’d rather maintain my 95 Jeep than buy a new vehicle.
The GOP party of free market capitalism has become the party of big government market intervention.
They act like people are gonna actually want to work these jobs! They gonna get a big wake up call when they realize nobody is gonna work. And not to many are gonna chose to work manual labor.
Trump and his voters belong under ADX florence
Now theres a black market for all these parts thank you
I found it quite disgusting that all of the people applauding Trump's tariffs speech about all the jobs stolen from American workers totally hypocritical. After all, it is those very people that work for those companies that outsourced all the jobs in the first place. Nobody stole American jobs. The wealthy CEOs and Boards of these companies gave those jobs away for bigger profits and to axe benefits. BS manipulators, all.
Anyone (including maga supporters) that lose their job because of this, has only one man to blame …..and it ain’t Joe Biden.
Trump2024 America 🇺🇸
😂 guess who won’t feel the uprise of price : Teslas . Not only are they made in the US but are also set to be cheaper. Electric vehicles (specifically Tesla) are made to control miles driven, exact location and cameras recording even the interior of the vehicle. Assuming everything goes as planned – Americans will only be able to afford electric vehicles – thus complete control of individuals to minimize travel which in turn will lead to more people only doing the “necessary” things to provide a forced and controlled economic growth. Smart: I would like to give you a warm welcome to the NEW UNITED STATES OF AMERICA. LAND OF THE FREE (sorta)
Russia not on the list. 😂
Short term pain for long term gain! Make it here!
Trump tries to limit GOP defections on tariff vote: https://on.wsj.com/4jcJfxo