Will tariffs affect price since BS is built in Mexico? [⛔️ ADMIN WARNING: NO POLITICS]

[Emalave]

So, with the recent breaking news today of a 25% tax going into effect on vehicles manufactured outside the USA, naturally my question is will this directly affect the pricing of all Bronco Sports from now on? I know the BS are exclusively built at a plant in Hermosillo, Mexico, correct?

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[Warped9]

It may be assembled in Mexico, but parts are manufactured all over North America. I highly doubt the BS would be exempt at least on some level.

It's noteworthy, too, that Ford has tweaked the price of the BS models to be a bit less or at least hold the line from 2024.

This is a truly screwey situation brought on by someone who doesn't have a clue how tariffs work. It certainly isn't going to push auto manufacturers to bring all their assembly plants back to the U.S. And even if it did that would take years to happen and U.S. auto workers are not going to accept lower wages for those vehicles to be built in the U.S. Ford, and others, are not going to spend god-knows-how-much to relocate their manufacturing back to the U.S.

Then again the real intent might be to get Americans to pay for the insane tax cut they want for the billionaires partly through the tariffs as well as cutting all the services and departments Americans rely on.

Ford and others have warned that if they go through with these ill-advised tariffs they will likely crater the U.S. auto market.

 

[Jake25]

Cars imported to the U.S. under the Canada-United States-Mexico Agreement (CUSMA) will be hit with tariffs only on their non-American components.

 

[Warped9]

Cars imported to the U.S. under the Canada-United States-Mexico Agreement (CUSMA) will be hit with tariffs only on their non-American components.

Considering how often parts criss-cross the borders before the car is actually assembled that's going to be a nightmare.

This is so stupid and unnecessary.

 

[hellb0y]

Yep - Ford has a plan to fully move manufacturing to Mexico so tariffs are only passed to customer once…instead of 200x

 

[hellb0y]

I’m having a hard time understanding the logic of moving 100% of manufacturing to Mexico (with zero American and Canadian content).

There will be suppliers located outside of Mexico but let’s assume the tariffs on those countries are also 25% when the vehicle is to be sold in the USA - under that scenario the cost of the vehicle would increase substantially (say 25%) to import the vehicle in the USA

Increase so much so that seems cheaper to then buy a full size Bronco made in the USA but then the full size Bronco likely has parts not made in the USA so there likely be some price increase for the full size Bronco

Seems that a tariff levied once or a tariff levied 200x has the same outcome - severe drop in sales of the vehicle

While Ford might not levy the entire cost of the tariffs onto the consumer, it seems highly likely price increases are coming

I think we are all just guessing on the long term outcome of these tariffs

Canadian content will continue to flow tax free to Mexico…parts for the Sport can be made locally or imported from other countries for cheaper than US made parts / example tires, Ford could source tires that are made in Mexico, China, Europe or Canada tariff free to replace the US made ones.

this approach would protect the price, even with a 25% tariff, but eliminate more US jobs…

 

[Warped9]

If the U.S. continues on its current trajectory Americans are in for dark times. Not that others won’t feel it also, but this administration is driving the country off a cliff.

 

[Warped9]

Personally I don’t believe tariffs are the right tool for his job (pun intended).

The tariffs are certainly not going to accomplish what they keep promising. Everything is going to get more expensive, inflation will climb ever higher (so much for cheap eggs), people will lose jobs, and former trading partners are just going to do business elsewhere. It’s already happening. On top of it America will lose its position and influence as the dollar is devalued and no one sees them as the centre of the global economic universe anymore.

When no one trusts you anymore the game is over.

 

[Jillrm]

I, for one, would appreciate not hearing your long winded political beliefs...

 

[vetterestorer]

We will see what happens -- when it happens. It will be interesting to see how Ford handles it. Will they pass the costs on to the consumer in a real competitive market or not?

 

[Big Ben]

Correct on both questions

But let’s wait and see if tariffs go into affect

And orders placed prior to tariffs going into affect will be the price negotiated with the dealership

It does seem fairly certain this time: “tariffs would go into effect on April 2, the US would start to collect on April 3. The tariffs will be on top of levies already in place, the tariffs would result in $100 billion of new annual revenue to the US.
tariffs are being cast as “permanent” and no exceptions will be negotiated
Shares of General Motors Co., Ford Motor Co. and Stellantis NV dropped in after-hours trading, with GM and Ford declining more than 5% as of 6 p.m. in New York.”

Sorry, but you are grossly misinformed. The 100 billion will be paid by US consumers to the US government. The importing companies pay the tarriffs to the federal government and pass that on to consumers . Exporting countries do not pay the tarriff, the idea is to reduce their exports and try to force manufacturers to move plants to the States.

 

[Big Ben]

Cars imported to the U.S. under the Canada-United States-Mexico Agreement (CUSMA) will be hit with tariffs only on their non-American components.

That is not true. The tarriffs are on every vehicle that crosses into the US, incliding multiple tarriffs on the parts, which cross the border several times.

 

[Big Ben]

I think you replied to the wrong post
Everyone knows exporting countries do not pay the tariff (at least directly)

I was reacting to the statement you made saying 100 billion in renues will go to the US. The government will get the 100 billion, but it will come from US consumers, in essence, a 25% tax.

 

[Bigband]

All, this is forum for owners and enthusiasts of Bronco Sports and all are welcome.

So going back to the original question - will the tariffs that are being placed on Autos assembled in Canada and Mexico result in higher prices for Bronco Sports. The answer is most likely yes. Companies that import the autos will have to pay the tariffs and some of that cost will be rolled down to the consumer. That is just how tariffs work.

My concern as an Owner is the cost of replacement parts if something happens to my Bronco Sport. They will go up in price too.

 

[FordBroncoLifts]

I, for one, would appreciate not hearing your long winded political

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