Ford Motor Co. (F) stock dropped nearly 5% in after-hours trading on Wednesday following President Donald Trump’s announcement of new auto tariffs. Trump revealed plans to impose an additional 25% tariff on all foreign-made cars and select auto parts, casting a wider net than industry expectations. The tariffs are set to take effect on April 2, though he clarified that vehicles manufactured in the U.S. would not be subject to these levies.
Trump’s Tariffs Shake Auto Stocks
Among major automakers, General Motors (GM) tumbled over 6%, while Stellantis (STLA) slid more than 4% in after-hours trading. Japanese automakers also declined, with Toyota Motor (TM) down 2% and Honda Motor (HMC) dropping 1.7%.
Trump’s 25% tariff on imported finished vehicles will come on top of existing duties. Currently, the base U.S. tariff rate for automotive imports stands at 2.5%. Meanwhile, tariffs on imported vehicles will take effect the following day on April 3, while duties on auto parts are expected to begin in May or later.
Trump asserted that the policy would drive growth in the automotive sector, with higher jobs and investment within the U.S. However, analysts warn that the decision could temporarily halt major car production, increase prices, and create tensions with key allies.
Bernstein Flags Greater Ford Stock Exposure
Earlier this week, four-star-rated analyst Daniel Roeska at Bernstein pointed out that Ford might be more vulnerable to these tariffs than initially expected. That’s because Ford’s vehicles made in the U.S. reportedly use only 30% locally sourced parts. Roeska has a Hold rating on F stock with a price target of $9.4.
Similarly, GM has confirmed that its exposure to the new tariffs aligns with Bernstein’s earlier estimates. The company manufactures 52% of the vehicles it sells in the U.S. within the country, but these vehicles contain only 29% locally sourced components.
Is Ford a Good Stock to Buy Right Now?
On TipRanks, Wall Street analysts have a Hold consensus rating on F stock based on four Buys, 10 Holds, and two Sells assigned in the last three months. The average price target for Ford is $10.59, suggesting an upside potential of 3% from its current price.
