Days before President Donald Trump’s 25% tariffs on imports from Canada and Mexico take effect, Ford has scrambled to move as many assembled engines from its Essex Engine and Windsor Engine plants in Canada into the United States as possible. To do so, the automaker has leased dozens of semi-truck trailers and warehouses in Michigan and Ohio. Although the trucks have only been able to transport a few days’ worth of engines, the effort is critical as these engines power Ford’s best-selling F-Series pickup trucks.
John D’Agnolo, president of Unifor Local 200 and chair of the Auto Council for Unifor, says his union is working with Ford to expedite shipments across the border in an effort to protect Canadian and U.S. jobs in the auto sector. According to D’Agnolo, if Trump reinstates the 25% tariffs on April 2, a single truckload of Ford engines could cost the automaker roughly $75,000 in tariffs. With tens of thousands of union jobs on both sides of the border at risk, moving as much inventory as possible before the deadline is critical.
On March 5, President Trump paused auto tariffs on vehicles and parts covered under the USMCA until April 2. His trade policy has left the auto industry divided. On one hand, tariffs serve as a negotiating tool, encouraging automakers to reinvest in U.S. manufacturing.
On the other hand, the automotive industry relies on deeply integrated cross-border supply chains, and tariffs could significantly drive up costs. If manufacturers pass these costs on to consumers, it could push shoppers toward lower-cost alternatives or out of the market. Affordability remains a critical pain point for both consumers and the dealer community. If demand drops, production slows—and layoffs are likely to follow.
It’s a high-stakes gamble with the potential to bring significant economic benefits to the U.S. or trigger widespread disruption. The auto industry operates on a “just in time” manufacturing model, making sudden shifts difficult—if not impossible. It can take anywhere from three to six years to bring a new vehicle from concept to production, and manufacturing plants cannot instantly ramp up engine production without massive supply allocations.
According to S&P Global, the automotive industry faces a 50% risk of extended disruption due to the ongoing global tariff war. The firm noted that only Ford, GM, and Stellantis have the excess capacity to expand domestic production. However, even if they chose to do so, the transition would take years—far too long to avoid the immediate impact of tariffs.
