From Top Electric.
On May 17, 2025, Ford Motor Company, a pillar of American industry, stunned the nation by halting production at key U.S. plants, including Chicago and Michigan, due to President Trump’s 25% tariffs on imported parts and vehicles. Intended to bolster domestic manufacturing, the tariffs instead crippled Ford, projecting a $1.5 billion earnings hit in 2025. Thousands of workers were sent home, and communities from Kokomo to Toledo faced economic fallout as diners, shops, and suppliers felt the squeeze. The North American auto industry, a finely tuned network spanning three countries, began to fracture. Ford raised prices on Mexico-made models like the Mustang Mach-E by $2,000, while halting exports to China, losing a vital market. General Motors and Stellantis also suffered, with layoffs and idled plants rippling across the Midwest. Consumers faced a 2.5% spike in car prices, thinning inventories, and stalled deliveries. Trump called the chaos “expected,” insisting companies should relocate production, but the industry warned of a million lost sales. Wall Street recoiled, with auto stocks tumbling. As China retaliated with tariffs, American cars grew too costly abroad. Workers, caught in a political divide, questioned the “America first” promise as jobs vanished. Ford’s CEO called it a “fair fight,” but the industry braced for a lost decade. This gripping saga exposes the high stakes of trade wars, where policy clashes with reality, leaving workers and communities to pay the price.
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