Ford‘s F-150, America’s best-selling vehicle for over four decades, faces an uncertain future as its heavily globalized supply chain could make it particularly vulnerable to proposed import tariffs. Federal data reveals that only 32% of F-150 components are manufactured in the United States or Canada, with the electric F-150 Lightning containing even less domestic content at 24%, reports The Guardian.

This relatively low domestic content percentage places the iconic truck in a precarious position as discussions of significant tariffs on imported goods intensify. The situation highlights the complex reality of modern automotive manufacturing, where even the most “American” vehicles rely heavily on global supply chains.

Supply Chain Complexity Poses Onshoring Challenges

The F-150’s current manufacturing process spans multiple countries, with final assembly occurring at plants near Kansas City and Detroit. However, crucial components like the 3.5-liter engines – including those for the Powerboost hybrid and Raptor variants – are produced in Mexico. While all transmissions are U.S.-made, and the Lightning’s motors and drive units are domestic, the overall vehicle remains heavily dependent on international suppliers.

Industry analysts note that any rapid shift toward domestic production would face significant hurdles. “The auto manufacturer is more like a parts collector – it’s not like Ford makes every component like everyone thinks,” explains Ivan Drury, director of insights at Edmunds. The complexity of modern vehicle production means that establishing new domestic supply chains could take years, requiring substantial investment in facilities and workforce training.

Market Position and Competition

When compared to competitors, the F-150’s domestic content lags behind some unexpected rivals. The Toyota Ridgeline, for instance, contains approximately 70% U.S. or Canadian-made parts and is assembled in Alabama. Tesla‘s vehicles, including the new Cybertruck, also maintain higher domestic content percentages around 70%, with production facilities in Texas and California.

EV Transition Complications

The F-150 Lightning’s even lower domestic content percentage (24%) underscores additional challenges facing electric vehicle production. Critical components like semiconductors and battery materials remain heavily dependent on international supply chains. While recent policies have encouraged semiconductor production in the U.S., domestic capacity remains insufficient to meet automotive industry demands.

Potential Impact of Proposed Tariffs

The proposed tariffs, which could range from 10% to 20% on most imports and up to 60% to 100% on Chinese goods, would likely significantly impact F-150 pricing. For Mexican-made components, including the popular 3.5-liter engines, tariffs could reach as high as 500% based on recent policy proposals.

Ford’s options for mitigating these impacts appear limited in the short term:

Rapidly shifting production to domestic suppliers would face significant logistical and capacity constraints
Absorbing the additional costs would impact profitability
Passing costs to consumers could affect the F-150’s market position
Seeking tariff exemptions or alternative suppliers could provide temporary relief

Industry-Wide Implications

The F-150’s situation reflects broader challenges facing the automotive industry. Modern vehicles typically rely on complex international supply networks that have been optimized for efficiency and cost-effectiveness. Disrupting these networks through tariffs could create supply chain shocks similar to those experienced during the pandemic.

While some manufacturers have begun investing in domestic production capacity, particularly for electric vehicles, these initiatives will take years to mature. Ford and GM are developing new EV and battery plants across the southern United States and Michigan, but these facilities primarily address final assembly and battery production rather than the full component supply chain.

The auto industry’s response to potential tariffs will likely require a delicate balance between protecting established supply chains and gradually increasing domestic content. For iconic vehicles like the F-150, maintaining affordability while adapting to new trade policies may prove to be one of the most significant challenges in their long history.