What's Going On With Ford Shares Thursday?

Ford Motor Company F shares are trading lower on Thursday after President Donald Trump announced plans to introduce tariffs on automobiles and related imports.

What To Know: Trump on Wednesday revealed a 25% tariff on imported cars and key auto parts, according to CNBC.

The tariff on imported vehicles will take effect on April 3, while the tariff on auto parts will begin by May 3. However, auto parts compliant with the USMCA agreement will remain tariff-free until the commerce secretary and U.S. Customs and Border Protection coordinate the logistics of applying tariffs to non-U.S. content.

Shares of Ford, along with other automakers like General Motors Company GM and Toyota Motor Corporation TM, are moving lower following this announcement, as these companies rely on imported parts to manufacture their vehicles. The tariffs could raise the cost of those imports, potentially impacting their profit margins.

Deutsche Bank analysts noted that, “Tesla and Ford appear to be the most shielded given location of vehicle assembly facilities although Ford does face incremental exposure on imported engines.”

Goldman Sachs analysts estimate that this tariff could increase the price of imported cars by $5,000 to $15,000.

See Also: Wall Street’s Most Accurate Analysts Give Their Take On 3 Materials Stocks Delivering High-Dividend Yields

F Price Action: At the time of writing, Ford shares are trading 3.3% lower at $9.96, according to data from Benzinga Pro.

Image: via Shutterstock