Looking to buy a new Ford Super Duty truck to pull your trailer? Better add some more dollars to your wallet. According to a story carried by Automotive News, Super Duty price hikes are not far off. The engines for the big tow rigs are built in Canada or Mexico, and tariffs set to start up on April 2 will likely be passed on to buyers.
Nearly $1,700 per engine tariff could lead to Super Duty price hikes
The 25% tariffs apply to all goods imported from the two neighboring countries. While Super Duty trucks are assembled in Kentucky, all the engines are sourced from outside the U.S. Since engines make up a big chunk of the truck parts cost, the tariffs will hit hard. Canada builds the “Godzilla” V8 gas engines, both 6.8L and 7.3L. The Power Stroke 6.7 V8 diesel engines come from Ford’s Chihuahua Engine Plant in Mexico.
Speaking of Ford, a Canadian union representative says, “They’ve been put in a horrible position. They have no choice but to continue to build the engines because there’s nowhere else to go, which is a good thing for us. But at the end of the day, the company’s going to be punished for it.” That’s the word from Unifor Local 200 President John D’Agnolo. “It’s unfortunate.” Unifor Local 200 represents about 2,000 hourly workers at Ford’s Windsor, Ontario, engine plants.
Unless Ford does a “major lift” and moves its engine production out of the two neighboring countries and into the U.S., every Ford Super Duty engine sold in the States will be open to the 25 percent tariff. D’Agnolo figures the tariff cost added for engines will be $75,000 per truckload. That translates to 45 Super Duty engines or 66 5.0L V8 engines for use in Ford F-150s.
Why doesn’t Ford just move engine building to the U.S.?
“The bigger issue [than the F-150] is the Super Duty, which relies on V8 engines,” reports Sam Fiorani. He’s vice president of global vehicle forecasting at AutoForecast Solutions. “Investing in a new production line to supply these heavy trucks with engines would cost hundreds of millions of dollars and take more than a year to get up and running.”
“Ford developed its supply chain based on the USMCA and invested presuming that President Trump negotiated a solid agreement in 2018,” Fiorani continued. “Moving production lines is never cheap, easy, or quick in the automotive industry. Investments are made for and paid off in the long-term.”
GM may see price hikes, too
Looking to buy a new “bowtie” General Motors truck? Don’t breathe a big sigh of relief yet. GM likewise relies on Canada and Mexico in its manufacturing picture. While GM has a manufacturing plant in Fort Wayne, Indiana, a big number of GM trucks roll off the lines in Canada. The Indiana production facility produces 40% fewer trucks than GM gets from Mexico.
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The end goal is a fair trade, no tariffs platform. In a short period of time, other countries will quit charging outrageous tariffs on the U.S. and these nominal tariffs will go away. The math is so simple. Far too much hysteria surrounding what has been the literal pillaging of America by the entire world for too long.
Umm, I guess you didn’t read the article. There have been no tariffs between the USA, Canada & Mexico on vehicles & parts until your psychopath, fearless leader decide we should attack our two closest neighbors and show them “who’s the boss” by putting a 25% tariff on which WE will pay!
LOL – that is right, there have been no tariffs between the USA, Canada & Mexico on vehicles & part BUT the simple-mind out there can’t see beyond their nose and realize there are more to world trade than “vehicles & parts”. You know, like 200 billion in tariffs on US good going to Kanakdah.
Why not just have free trade worldwide???? (NO TARIFFS – NO GOVERNMENT SUBSIDIES).
On a side note, I would rather have a fearless leader than a useless one that didn’t know it head from it, you know what, and have the decisions made by unelected bureaucrats using an autopen.
At least we know who is the boss now. No idea who was boss the last 4 years, none. No one does…. I think that there were several, but no one was really in charge, at the very top.
Let’s take a victory lap together PGR;
– illegal border crossing down 97% with no new laws.
– Hostages coming home with no ransom paid.
– Gas down 10% and eggs down 40% without price controls.
– Almost 4 trillion dollars in foreign investment commitments bringing factory jobs back to the USA.
– Mortgage rates lower.
– Inflation already down, and dropping.
Need more? Happy trails 😎✌️
what the hay have you been smoking? Prices down on first day in office he declared…BS…when is the first day?
He was busy on the first day JB, he had to throw a reception for a dozen hostages that had been held for a year and half under JB’s term.
He was busy my derriere the only thing he was busy about was sticking it to us little folks….and they are still doing it.
Gas is UP, over $3 a gallon now
Eggs are up, over $7 a dozen show me where to shop
Any grade school kid knows about tariffs and who pays them. The guy that drives the truck. Not the government that makes the rules. A friend of mine and his friends have decided to stay in Canada this next year and boycott US
A lot of Canadian people are going to do the same and who gets hurt. The campsites
Eggs are down 40%. Gas is down 12%.
US is allowing all trade partners to pick the tarrif rates. Reciprocal. What could be more fair? They decide the rates, not us.
Get current.
The only way tariffs will go away is when Trump and Musk go away in the next presidential election.
If that is the case, why didn’t JB get rid of the tarrifs that went on China 2017-2019? If only you and the entire left could be consistent mrpavet, then your credibility and the entire left’s credibility would elevate somewhat.
Consistency is a sign, of a moral spine.
there ya go again….still puffing left handed smokes. What credibility is in place now? What about the Yemen fiasco….if you look…you can actually see the forest for the trees.
Yemen fiasco….. you mean the 100% successful attack on the terrorists without a single casualty? That Yemen fiasco?
Hey Cancelproof. Thank you for your participation in the comments. You make them somewhat palatable. It is most tiring when it seems all that gets debated is incomplete stories and media talking points.
So adding $1,700 to the cost of an $80,000 truck is going to keep you from buying it and towing that $150,000 5th wheel? That’s a “steep price hike”?
If Ford can invest in other countries, they can invest here. Besides you’re talking about $1700 on a $60-$70-$80k vehicle. Oh woe is me.
It’s not only Ford that is guilty of using foreign made parts…Stellantis is also guilty of it.
Guilty?
The USMCA is a legally binding trilateral trade deal that Trump negotiated and signed as the “Greatest trade deal in the history of the world.”
Now it isn’t? Help me out here.
At one time, we had 9 planets. I even remember a time when when driving a Tesla was the environmentalist’s choice, now they burn them. I wonder what the carbon footprint of burning a Tesla is?
My point is Leonard that you are correct but don’t you think it will be easier once it is a reciprocal system?
Serious question to my Canadian brethren; When Canada gets to choose what the tarrifs will be both ways, merch heading north or merch heading south, what could be more fair than that? Seriously, if America allows every country on the planet to choose the tarrif rates (reciprocal), how is that bad for anyone? What could be more fair, or more free….to trade?
And that is why we have signed, legally binding trade deals between countries and allies. The USMCA is up for renegotiation in 2026; until then is it wrong for signing countries to honor their trade deals?
Trump’s tariffs on the auto industry remain illegal under this agreement that he negotiated. He is supposed to be the “ultimate” dealmaker, an honorable business person who lives up to all the deals he makes. Can Canada trust him or not?
Tariffs outside of the USMCA are a completely different story, and I am fine for the US to have at it, as Canada and the rest of the world are free to do so as well.
Regardless, the US can stomp us like a bug, but I hope not!
Yes Leonard, perhaps the end does not justify the means…. maybe waiting another year is best, or maybe now is better for the negotiation and then implementation per the 2026 timeline.
Either way, you won’t find not 1 in a 100,000 Americans that wants to stomp Canada like a bug. Not even DT wants that but the path to fair trade is a rough one, to be sure.
Be well sir. 😎✌️
Leonard, I will add that it could be about momentum right now. Midterms in 2026 will dampen the R desire to get big stuff done and right now, DT has the highest approval of any second term president in modern times. It will wain however so he has to hit it hard and fast.
✌️😎
A couple of years back a business in our area held a drawing for three 3/4 ton trucks. The drawing was a patriotic gesture held on July 4. They were a red GMC, a white Ford and a blue RAM. The window stickers on all 3 trucks listed engines built in Mexico and one even had a German tranny!
This action is not based on a EA, but rather on
Thank you for the news, Russ and Tina! Interesting. I wonder if this effect falls into the category of “unintended” consequences, or “expected?” We certainly are living through a curious time. Have a great day and safe travels!