Ford Motor Company (NYSE: F) saw its stock price plummet 5.09% in Tuesday's trading session, as President Trump's aggressive new tariffs sent shockwaves through the automotive industry. The sharp decline highlights the significant challenges facing U.S. automakers in the current trade environment.
The latest round of tariffs announced by the Trump administration has hit American car manufacturers particularly hard. Ironically, Detroit's "Big Three" automakers - including Ford - are among the most exposed to these trade measures. A new report by auto data firm JATO Dynamics reveals that General Motors, Stellantis, and Ford collectively sold 1.85 million imported vehicles in the U.S. in 2024, accounting for 12.6% of their global total sales. This level of exposure significantly outpaces that of major Japanese and German automakers.
Ford's global manufacturing footprint and reliance on international markets make it especially vulnerable to escalating trade tensions. The company now faces potential disruptions to its supply chain and increased costs for imported components. Additionally, retaliatory tariffs from other countries could hurt Ford's export sales. These factors are raising serious concerns about the automaker's near-term profitability and long-term competitiveness. Adding to the pressure, CreditSights analysts have identified Ford as a potential "fallen angel" candidate, at risk of being downgraded from investment-grade to junk bond status within the next 12 months. This combination of trade-related challenges and financial concerns has clearly spooked investors, leading to Tuesday's significant sell-off in Ford shares.
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