Tariffs Hurt Ford – It’s a Ping Pong Stock

Ladies and gentlemen, buckle up! We’re diving headfirst into the wild world of Ford Motor Company (F) and the tariff tornado that’s sweeping through the automotive industry. This isn’t just about cars; it’s about the economic earthquake that’s shaking the foundations of one of America’s most iconic companies. So, let’s get down to business!



First things first: TARIFFS ARE A NIGHTMARE FOR FORD! President Trump’s recent tariff policies have thrown a wrench into Ford’s supply chain and production strategies. On March 5, 2025, a one-month exemption from tariffs on goods from Mexico and Canada was granted, but it’s just a Band-Aid on a gaping wound. Ford, along with the other Big Three automakers, is scrambling to adjust to these new rules. The USMCA compliance deadline is looming, and the question of who absorbs the brunt of the import levies is a ticking time bomb.

Ford’s supply chain officer, Liz Door, has been busy strategizing. She’s stockpiling USMCA-compliant parts and reviewing logistics routes to maximize efficiency. But here’s the kicker: THESE TARIFFS ARE A DOUBLE-EDGED SWORD! While Ford is trying to minimize disruptions, the increased costs on non-compliant parts could be a financial disaster. Auto parts suppliers are already feeling the heat, with some refusing to ship parts unless customers cover the tariffs. This is a recipe for disaster, folks!

Now, let’s talk about the elephant in the room: THE FORD F-150! This truck is Ford’s cash cow, and it’s one of the biggest users of aluminum in the industry. The Trump administration’s 25% tariff on steel and aluminum imports is a direct hit to Ford’s bottom line. Engines for the Ford F-Series Super Duty are made in Canada and Mexico, not the U.S. This means Ford is caught in the crossfire of tariffs and labor costs. Swamy Kotagiri, CEO of Magna, a major global supplier for automakers, described the proposed tariffs as “absolutely disruptive to the industry.” And he’s right! This is an industry-wide issue that can’t be solved by any one player.

But here’s where it gets interesting: FORD’S SHIFT TO HYBRID VEHICLES! This is a game-changer, folks! Hybrid vehicles are in high demand, and they’re significantly more profitable than all-electric vehicles. Ford’s sales of hybrid vehicles in the final quarter of 2023 were up 55.5% versus a year ago, compared to a 27.5% increase in sales of its electric vehicles. The Ford Maverick (hybrid) was the best performer last year with sales up 67% on a year-over-year basis. This is a clear indication that consumers are flocking to hybrid vehicles, and Ford is capitalizing on this trend.



But it’s not all sunshine and rainbows. Ford has been plagued by quality issues that have resulted in high warranty costs. In the third financial quarter, Ford came in shy of expectations partly because of a $1.2 billion increase in expense related to warranties. Addressing these quality issues is crucial for Ford’s long-term success. By focusing on hybrid vehicles and improving quality, Ford can boost its stock price and strengthen its competitive position in the automotive industry.

So, what’s the bottom line? FORD IS A PING PONG STOCK! It’s bouncing back and forth between the tariff nightmare and the hybrid vehicle boom. The recent pause in tariffs for the auto industry caused a brief surge in market activity, leading to some unpredictability in stock movements. But if Ford can navigate these choppy waters and focus on hybrid vehicles, it could emerge as a winner in the long run.

But remember, folks, THIS IS A HIGH-RISK, HIGH-REWARD SITUATION! Ford’s stock is volatile, and the tariff policies are a wild card. You need to be ready for anything. So, do your homework, stay diversified, and keep an eye on the market. This is a ping pong stock, and you need to be ready to play the game!

So, are you ready to take the plunge? BUY NOW, SELL LATER, AND HOLD ON FOR THE RIDE OF YOUR LIFE!