On August 15, 2026, the Wall Street Journal reported that Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) are privately lobbying for tariff policies that favor their own manufacturing footprints while each publicly claims to be the more “American” automaker.
Ford, which builds about 80% of its U.S. sold vehicles domestically and employs more factory workers than any rival, is pushing for steeper tariffs on imports from South Korea, where GM builds roughly 400,000 vehicles a year. It includes many of its most affordable models. In turn, GM has targeted Ford’s electric-vehicle battery strategy, opposing federal support linked to Ford’s reliance on Chinese battery technology. GM expects $3 billion to $4 billion in tariff costs this year and aims to outproduce Ford in U.S. assembly. It is a title Ford has used in its marketing. Both companies publicly support renewing the USMCA trade pact even as their specific tariff asks diverge.
Bull Case
Ford Motor Company (NYSE:F)’s case rests on a genuinely strong and easily verifiable domestic manufacturing footprint. Building 80% of its U.S.-sold vehicles domestically and employing more factory workers than any rival gives Ford real political leverage in Washington, since tariff carve-outs and USMCA terms increasingly reward companies that can prove the most U.S. content and employment.
General Motors Company (NYSE:GM)’s counter-strategy could meaningfully reduce its own tariff exposure while reclaiming a marketing title. GM has invested roughly $60 billion in the U.S. since 2020 and is shifting production, including bringing the next-generation Buick Envision back from China, specifically to lower tariff costs and overtake Ford in U.S. assembly volume. Success on that front could cut costs and hand GM the “most American” marketing claim at the same time.
Both companies share genuine common ground on the policy outcome that matters most broadly. Ford, GM, and Stellantis have all pushed for USMCA renewal and lower tariffs on North American-made parts and vehicles. It is a shared interest that gives Detroit’s automakers real, aligned lobbying power on the trade rules affecting their core North American supply chains.
Bear Case
This is classic corporate greed: both companies are pushing for import taxes to hurt their rivals rather than help consumers. Ford wants tariffs targeting the South Korean imports GM depends on for its cheapest models, while General Motors Company (NYSE:GM) targets Ford’s battery strategy. It is a dynamic that raises industry costs without clearly strengthening either firm’s basic competitiveness.
The tariff costs are already high and rising regardless of who wins the lobbying fight. GM’s tariff burden is already large and could continue pressuring profits. The company expects tariffs to reduce 2026 earnings by $2.5 billion to $3.5 billion, while Reuters reported that the burden could represent more than 20% of GM’s operating profit.
Neither company’s “most American” claim is as clean as its public messaging suggests. Ford Motor Company (NYSE:F)’s decision to move Lincoln production from China to the U.S. directly responds to tariffs, with CEO Jim Farley saying the company made the decision because of the administration’s policy. Meanwhile, GM still relies heavily on foreign production, including Canadian facilities for key models, leaving both automakers exposed to cross-border trade risks.
Conclusion
The Ford-GM fight over who is more American highlights a bigger truth: neither automaker can escape complex global supply chains. Ford Motor Company (NYSE:F) starts with a stronger U.S. manufacturing setup, while General Motors Company (NYSE:GM) responds with billions in new domestic investments. Still, import taxes threaten both companies’ profits, with GM facing billions in expected costs. Investors will reward the automaker that turns its U.S. factories into lower costs and higher profits, rather than the one that simply wins a patriotism title.
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Disclosure: None. This article is originally published at Insider Monkey.
