by Automakers in the Battle Over Tariff Terms
Competitors General Motors and Ford have called on the Trump administration to reject Stellantis’ request to cancel or ease a tariff of up to 25%, which could apply to medium-duty Ram pickups produced in Mexico. The rivals argue that such a concession could give Stellantis an unfair advantage and disrupt a level playing field.
Key Points of the Situation
Government Research and Decisions
In April, the U.S. Department of Commerce launched an investigation into the import of heavy trucks, focusing on medium- and heavy-duty models to support domestic production. Trump recently announced a 25% tariff on heavy trucks but has not yet made a decision regarding the import of medium-duty models, despite previously promising to do so by October 1.
Lobbying and Company Positions
Stellantis is actively lobbying for its interests regarding a potential tariff on medium-duty trucks. However, GM and Ford are also pressuring the government, demanding that Stellantis not be given advantages compared to trucks assembled in the USA from imported components, which are already subject to tariffs.
According to Crain’s Detroit Business, Stellantis manufactured over 200,000 medium-duty Ram 2500 and 3500 trucks at its plant in Saltillo, Mexico, in 2024. This plant alone brought the company approximately $13.8 billion in revenue last year. New tariffs could cost it up to $2 billion in annual adjusted operating profit.
Ford’s Position and Future Decisions
Ford recently supported the U.S. administration’s tariff on heavy trucks, which is not surprising, as the company produces all of its heavy trucks in the United States.
Ford appreciates the Trump administration’s recent actions on heavy trucks, which support our shared goal of growing the American automotive industry and U.S. manufacturing. American automakers deserve a level playing field.
It is currently unknown when the Trump administration will make a decision on tariffs for medium-duty trucks.
This battle over tariff terms reflects deeper issues of globalization in the automotive industry, where manufacturers seek to balance costs, competitiveness, and political pressure. Mexican plants like Saltillo have become key links in supply chains, but their role could change due to trade restrictions, affecting not only company profits but also market prices for consumers.
