Consumers will be squeezed by rising car prices from the fallout over President Trump’s tariffs on steel and aluminum, according to Ford’s Executive Vice President Jim Farley.
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“The tariffs that we are seeing will absolutely be a headwind for our costs and some of that will have to be passed on to the customer,” Farley told FOX Business’ Maria Bartiromo on “Mornings with Maria” on Wednesday.
For the most part, Ford buys steel and aluminum in the U.S. But high tensile steel, which is a tougher metal used on car parts like shafts and gears, are bought overseas, Farley said.
“There is just no other place in the world to buy them,” he said. “They are very specific types of materials and that’s going to drive costs.”
Over the past year, the auto industry has faced rising commodity costs and generally higher steel and aluminum prices. But Farley said the “tariffs are going to add to that.”
Farley, who represented Ford and Lincoln at the 2019 New York International Auto Show said demand remains high for the award-winning Lincoln Navigator.