Ford Continues to Request Relief from Aluminum Tariffs. The White House Responds, Who's Ford?

      Ford

      The latest automotive news and reviews, no nonsense

      Sign up for our free daily newsletter to receive the essential stories directly to your inbox every weekday.

      Recently, Ford has been in the spotlight regarding the sales of its revamped Mustang. However, within Ford’s sales report, there was some less favorable news. Sales of the F-Series pickup remain lower compared to a year ago. While this partly reflects a decrease in demand for full-size domestic pickups compared to previous years, Ford has claimed it has been struggling to meet the demand for its high-volume, lucrative pickups since last fall when a fire disrupted production at Novelis, one of the largest domestic aluminum parts suppliers.

      Novelis, which provides aluminum to various automakers in addition to Ford, has indicated that production at its facility in Oswego, New York, is expected to resume in June. During this period, Novelis has had to source aluminum from overseas, resulting in tariffs of 25%. This situation is particularly challenging for Ford, which has previously emphasized the materials used in its vehicles, particularly the aluminum panels for its full-size pickups.

      Due to these unforeseen circumstances, Ford reached out to the administration late last year to seek temporary relief from tariffs. While relief was granted, it turned out to be somewhat short-lived. The administration approved a waiver for Ford’s operations until November—about a month after the incident—rather than extending it through May of this year, when Novelis anticipates resuming production in New York. This adjustment has already cost Ford around $900 million in additional tariff expenses.

      Like many automakers, Ford has been exploring ways to mitigate tariff-induced inflation without increasing the prices of vehicles, but many customers are discovering that the effects are evident in showrooms, where fixed destination and delivery fees have been gradually rising.

      Meanwhile, as reported by The Wall Street Journal, Ford continues to seek tariff relief with little success. The administration, however, seems unyielding; a White House official informed the Journal that automakers, including Ford, “have not requested tariff relief on this matter in a particularly pronounced way.”

      What does this imply? We leave it to your interpretation.

      Ultimately, the real casualty in this situation will continue to be the customer. The funds Ford allocates to cover unexpected tariffs are funds that could have been used to incentivize the sale of new pickups. But rest assured, the government is likely to find a way to spend that money wisely.

      Have a news tip? Contact us at tips@thedrive.com!