Just before Christmas Donald Trump singled out Ford once again, this time at a rally in Walker Michigan. Ford probably wishes that Trump’s campaign would run out of gas, or at least that the United States presidential candidate would stop harping on its operations south of the border, but neither seems to be happening anytime soon.
This time around Trump’s threatening the Blue Oval with a 40% tariff for all vehicles it produces in Mexico and then ships across the border into the United States. The thought is that exacting those kinds of punishments on the company will bring lost jobs back to the domestic economy and discourage other American companies from expanding foreign operations.
According to a report from the Detroit Free Press, Trump said during the rally “The American dream is dead, but I’m going to make it bigger and better and stronger.” The crowd reportedly loved his remarks, and not just about Ford but also a variety of other issues Trump said are hurting Americans.
At one point, Trump stated that Mexico will become the new car manufacturing center of the world. His plan is to stop the exportation of such jobs from the United States.
Ford originally angered Trump when it announced in April of this year that it was expanding its manufacturing efforts in Mexico. Trump has harped on the automaker since he jumped into the race during the summer, and has been constantly at or near the top of numerous polls since. Ford is spending $2.5 billion on the production strategy in Mexico, money that some think should be kept in the United States.
Originally, Trump’s plan was to levy a 35% tariff against Ford for Mexican imports. There was no explanation for why that amount increased by 5%. Several news outlets and industry analysts allege that the plan would stall out because it almost definitely violates NAFTA. Trump likely doesn’t care since he’s repeatedly said he doesn’t plan on honoring the trade agreement.
So far Ford hasn’t responded to this new attack. Previously the automaker has said that no jobs are being shipped to Mexico, and at the same time has highlighted manufacturing expansion projects in the United States.