Tariffs- how do they affect Broncos? Not political please

[zoober]

So I’ve seen on here that folks are buying and dealers are discounting now to avoid tariff pitfalls.
My question is do they affect the (mostly) made in the USA Broncos? I know mine has the built in Michigan thing on it.
I would think they are exempt, and will be a better value when tariffs hit as opposed to foreign built vehicles.
Am I off in my thinking?

Sponsored

 

[Langwilliams]

Since they are assembled in Michigan I would think they are exempt from tariffs. My brother is a Ford retiree an his grandson works for Ford in the Louisville area. They were hearing that a maverick line was coming to the escape plant there. This was a month ago. The tariffs might move some domestic models made in Mexico back.

 

[RagnarKon]

Right now they are exempt from many of the tariffs, but not all.

The administration has stated that they will add additional tariffs on automotive parts originating from outside this country sometime early May. If the administration continues forward with that plan, it will definitely have a greater impact, as many of the parts that go into a modern vehicle originate from outside of the United States.

How that "greater impact" will affect prices we see as customers... we don't really know. A lot of it depends on the specifics which are currently unknown, how the greater economy reacts, how the automotive industry reacts, etc. etc. Just far too many unknowns at this stage, and our crystal balls simply aren't good enough.

 

[Brian_B]

Any components used in the manufacture sourced from outside the US will be subject to tariffs - so there will be some impact.

True that the Bronco itself will not be directly subject based on US manufacture. But it is not immune - parts, steel, and aluminum all have import tariffs that will apply in some manner indirectly.

 

[Smocaine]

While all Broncos are built in the United States, many of the major parts are imported. The manual transmission is made in China, and the 2.3L engine is made in Mexico.
The (first) figure I have for the "made in USA" content of the Bronco is 42%.

 

[Brian_B]

and the 2.3L engine is made in Mexico.

Is that just the new 2.3? My 2023 2.3 says Lima Ohio on it.

 

[RagnarKon]

While all Broncos are built in the United States, many of the major parts are imported. The manual transmission is made in China, and the 2.3L engine is made in Mexico.
The (first) figure I have for the "made in USA" content of the Bronco is 42%.

Is that just the new 2.3? My 2023 2.3 says Lima Ohio on it.

Nah it's Ohio.

Both the new 2.3L and the old 2.3L are made in Ohio.

They also have production in Spain and somewhere in Asia, but as far as I know those engines are for the European and the Australian/Asian/African markets.

 

[Smocaine]

Is that just the new 2.3? My 2023 2.3 says Lima Ohio on it.

Very plausibly, this is the article I'm pulling from, and it's MY2025-based.
This also doesn't differentiate between the US and Canada - Canadian imports may be subject to tariffs and increased prices as well.

 

[Langwilliams]

Nah it's Ohio.

Both the new 2.3L and the old 2.3L are made in Ohio.

They also have production in Spain and somewhere in Asia, but as far as I know those engines are for the European and the Australian/Asian/African markets.

I think the focus RS's that had all the head gasket problems where made in Spain

 

[Lowcountry Bronco]

Here's the '24 auto index:

https://kogod.american.edu/autoindex/2024

Bronco 2.7 is 59% domestic content and the 2.3 is 45%, so yeah, it's going to be affected.

 

[Techun]

Even if it was 100% built in the USA with only USA parts, the cost would go up with everything else.

 

[BroncoT]

Tariffs independent of the economy will increase prices. I’ve read 1.5% higher inflation is expected. The big question is when will the recession hit and how hard. If it’s fast, there could be an inventory glut and buying opportunity. Slow and Ford will have time to ramp down production, lay off workers and such. That part is impossible to predict.

I read the recession is expected in the back half of 2025, which would be the slow route. Nobody really knows though, no country has intentionally started a recession before. This leaves everyone guessing. Maybe we avoid a recession, but that seems unlikely from what I’ve read.

Ford offering company pricing indicates they fear an inventory glut In my opinion.

 

[kevin.gt]

will be a better value when tariffs hit as opposed to foreign built vehicles.
Am I off in my thinking?

My thinking is that if imports cost more, demand will gravitate towards domestic, rising their prices too. Moving manufacturing to US has an up front cost that will probably get passed to consumers. People adjust their expectations and start anchoring to higher prices, like we did during covid. I can’t imagine US auto prices not being affected unless the overall economy takes a nose dive

 

[Langwilliams]

Plus all the projections are made assuming trading partners don't reduce their current tariffs on US made goods to get the US tariffs reduced/dropped on theirs. There's going to be an adjustment period an the final numbers may end up looking nothing like what's in place right now.

Open your markets to our products an you will keep access to ours.

 

[dpAtlanta]

It is reportedly supposed to balance out over the next few months or so…. Without getting political, I prefer to wait and see what actually happens before I jump to politically motivated opinions.
Reacting to actual results makes a lot more sense than reacting to political rhetoric.

Sponsored