Its very difficult for us to be able to make money on a vehicle produced in the U.S, said Fields, explaining that if they were to raise the cost of their smaller cars to compensate for the increased cost of manufacturing in the United States the car just wouldnt sell...
We can expect the price of their small car to increase as Trump’s 35% import tax will raise it anyway. Let say the average price of that “small car” is around $25K (guessing at the price) OK, add 35% to that and the price becomes $33,750, or an increase of $8750 due to the import tax. My guess the average small car buyer will seek a less expensive “equal” small car.
Best of both worlds.
You are not subtracting off the margin for using almost slave labor. The price will not go up the whole tariff amount. Ford will eat a lot of that tariff.