Ford Motor Company (NYSE: F) saw its stock price plummet 5.09% during Tuesday's trading session, as President Donald Trump's newly announced auto tariffs cast a shadow over U.S. automakers. The steep decline reflects growing investor concerns about the potential impact of these trade measures on Ford's business operations and profitability.
The tariffs, which include a 25% levy on foreign-made cars, were initially expected to primarily affect non-U.S. automakers. However, a new report by auto data firm JATO Dynamics revealed that Detroit's Big Three – General Motors, Stellantis, and Ford – are actually the most exposed to these tariffs. According to the report, these American automakers collectively sold 1.85 million imported vehicles in the U.S. in 2024, accounting for 12.6% of their global total sales. This figure significantly outweighs the exposure of major Japanese and German brands.
Adding to Ford's woes, CreditSights analysts have identified the company as a potential "fallen angel" candidate, at risk of being downgraded from investment-grade status to junk status within the next 12 months. This development, coupled with the tariff concerns, has led to a sharp sell-off in Ford's stock. As the auto industry grapples with these new challenges, investors will be closely watching how Ford and other U.S. automakers navigate the evolving trade landscape and its potential impact on their bottom lines.
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