Key facts
- Ford plans to move Lincoln production from China to the U.S. by 2030.
- Tariffs are a primary driver for Ford's decision to onshore Lincoln production.
- Detroit automakers estimate new trade deal proposals could add at least $2 billion annually in costs per company.
- GM expects tariffs to cost $2.5 billion to $3.5 billion this year.
- Ford estimates its net tariff hit at about $1 billion this year.
- U.S. automakers are concerned about a proposed 50% U.S.-made content requirement for vehicles.
Ford plans to move production of some Lincoln models from China to the United States by 2030, a decision driven by the Trump administration's tariffs. Ford CEO Jim Farley indicated that the company recognized the need to adapt to the administration's focus on increasing domestic auto production. This move comes as Detroit automakers express concerns that proposed revisions to the North American trade deal could significantly increase their costs and impact competitiveness. Specifically, a demand for at least 50% U.S.-made content in vehicles, up from the current 75% North American content, is estimated to add at least $2 billion in annual costs for each of the major Detroit automakers. These potential new costs compound existing expenses from tariffs on steel, aluminum, and imported vehicles. General Motors anticipates tariff-related expenses of $2.5 billion to $3.5 billion this year, while Ford estimates its net tariff hit at around $1 billion. Automakers argue that foreign rivals from Japan, South Korea, and Europe face lower tariff burdens. U.S. Commerce Secretary Howard Lutnick voiced optimism that more manufacturers will follow Ford and GM's lead in shifting production to the U.S. Trade talks between the U.S. and Mexico are scheduled for next month, while Canada is also engaged in discussions to avert further tariffs.