Trump’s New Auto Tariffs Could Shake the Industry — But Ford Might Quietly Win It All

On March 27, 2025, former President Donald Trump announced a bold move: a 25% tariff on all imported vehicles and auto parts. The objective is clear — punish foreign manufacturers, boost American jobs, and reshape the domestic auto industry.

The announcement sent shockwaves through markets, rattled global automakers, and dragged auto stocks down across the board.

But one company may emerge stronger than the rest: Ford Motor Company (NYSE: F).

With its deep roots in U.S. manufacturing and minimal exposure to cross-border supply chains, Ford might be one of the rare winners in this high-stakes tariff game. And with its stock trading near recent lows, this could be a rare opportunity to buy a quality American brand at a discount.

What Are Trump’s New Auto Tariffs?

Trump’s proposed 25% tariffs target imported cars and auto parts. The intention is to protect and revitalize American manufacturing by making foreign vehicles more expensive and encouraging consumers and automakers to support domestic production.

This is a massive policy shift with far-reaching implications. It impacts:

• Foreign automakers that export to the U.S.
• U.S. automakers with overseas plants
• Auto suppliers with international operations
• Ultimately, American consumers facing higher car prices

In short, the entire global auto industry is watching this very closely — and not without anxiety.

Ford's Unique Advantage: Built in America

Ford produces the majority of its U.S.-sold vehicles domestically. According to industry data, over 75% of Ford’s U.S. sales come from vehicles manufactured inside the country — many of them in longstanding factories located in Michigan, Missouri, Kentucky, and Illinois.

That means:

• Ford’s vehicles are largely shielded from these new tariffs
• The company can maintain competitive pricing while rivals face cost increases
• It becomes more attractive to U.S. consumers avoiding imported models

Ford's Stock Is Down — That’s the Opportunity

Despite its strategic advantage, Ford’s stock fell with the rest of the auto sector following the tariff announcement. As of March 28, 2025, shares were trading around $9.90 — down nearly 4% on the day.

This dip likely reflects short-term uncertainty and broad market fear rather than company-specific weakness.

And that’s exactly why it could be an opportunity. Investors are often slow to separate the winners from the losers during chaotic news cycles. But once the market digests the implications, Ford’s advantages could come into sharper focus — and so could its valuation.

Comparing Ford to General Motors and Stellantis

General Motors (GM)

• Substantial operations in Canada and Mexico
• Many vehicles and parts cross borders before reaching U.S. consumers
• Tariffs could sharply increase GM’s costs

Stellantis (STLA)

• Owns Chrysler, Dodge, and Jeep
• Significant exposure to European production and global supply chains
• Tariffs would be a headwind on multiple fronts

Ford (F)

• Mostly U.S.-based production
• Lower exposure to import taxes
• Stronger position in a protectionist policy environment

Tariffs Could Influence Consumer Behavior

Car prices are going up — but not equally.

Imported vehicles from brands like Toyota, Hyundai, BMW, and Volkswagen will likely become more expensive. In contrast, Ford’s domestically built vehicles will likely see smaller price hikes or none at all.

That price gap may cause American consumers to favor Ford models such as:

• The F-150
• The Bronco
• The Explorer
• The Mustang Mach-E

All of these are made in the U.S., and all are household names. With affordability under pressure, Ford’s “Made in America” image and pricing power could make it the go-to choice for practical buyers.

A Look at Ford’s Longer-Term Strategy

Beyond tariffs, Ford has been quietly transforming:

• Expanding its EV lineup with models like the F-150 Lightning and Mustang Mach-E
• Cutting costs with a leaner post-COVID manufacturing model
• Strengthening its direct-to-consumer tech infrastructure
• Investing in connected vehicle software and autonomous driving R&D

These initiatives position Ford not just as a legacy automaker, but as a company adapting for the next decade of transportation.

Tesla Might Win Too — But It’s Already Priced In

Many analysts have pointed out that Tesla could also benefit from Trump’s tariffs. That’s true — Tesla builds most of its U.S. cars in California and Texas.

But there’s a key difference: Tesla stock has already surged on the news. Ford, on the other hand, has barely moved — or even declined — despite its clear advantages. For value-focused investors, that’s where the opportunity lies.

Risks to Consider

No investment is without risk. Here are a few to keep in mind:

• If tariffs are rolled back or blocked politically, Ford loses its short-term edge
• The company still faces pressure from rising labor and materials costs
• EV competition remains fierce, especially from Chinese manufacturers
• Consumer sentiment could weaken if prices rise too quickly across the board

Bottom Line: Ford Could Be the Most Mispriced Beneficiary of Trump’s Auto Tariffs

It’s easy to lump all automakers together when headlines hit. But dig a little deeper, and it becomes clear: Ford is not like the rest.

• It builds in America
• It sells to Americans
• It’s undervalued relative to its peers
• It could actually gain market share while others struggle to adapt

For investors looking for a compelling mix of value, stability, and a real political tailwind, Ford might just be the quiet winner of this tariff war — and right now, it’s trading like nobody sees it coming.

If you believe in buying strong companies during moments of market overreaction, this may be your moment.