Commerce Secretary Howard Lutnick stated that President Donald Trump's Section 232 auto tariffs are driving domestic manufacturing growth and bringing thousands of jobs to the United States. Speaking at Monterey Car Week in California, Lutnick claimed the tariffs were "winning the day" by incentivizing automakers to shift production facilities to US soil.

Ford and Toyota Manufacturing Shifts

Lutnick highlighted specific corporate actions as evidence of the policy's impact. He pointed to Ford Motor Co.'s (NYSE: F) decision to move production of Lincoln vehicles from China to the US by 2030. Lutnick described this move as a significant victory for domestic manufacturing.

Ford CEO Jim Farley confirmed that tariffs influenced the decision, noting that the Lincoln Nautilus imported from China faces a 52.5% tariff. Farley stated that Ford is betting on its belief in America by expanding domestic operations.

Lutnick also cited Toyota Motor Corp (NYSE: TM) as a positive example, praising the automaker's existing facilities in San Antonio, Texas, and Kentucky. He noted that Toyota manufactures its Tacoma and Tundra trucks in the US.

Workforce and New Product Developments

Beyond existing models, Lutnick suggested the manufacturing push could attract younger workers to high-tech roles. He mentioned companies offering wages starting at $23 an hour to professionals hired directly out of high school for training programs.

In related product news, Ford revealed the name of its new electric pickup truck, the Fathom. The vehicle is priced under $30,000 and will compete with Tesla Inc. (NASDAQ: TSLA)'s Cybertruck.

What the Numbers Show

The data highlights a direct correlation between tariff rates and supply chain restructuring. The 52.5% tariff on the Lincoln Nautilus serves as a specific cost driver for Ford's decision to relocate production by 2030. This suggests that high tariff barriers are actively reshaping long-term capital allocation strategies for major automakers, prioritizing domestic compliance over current import efficiencies.

Fitch has forecast U.S. economic growth to remain relatively resilient at 1.9% in 2026-2027, marking a decline from 2.8% recorded in 2025. The rating agency highlighted that labor demand has weakened and job creation has dropped significantly in 2026, pointing to a softening in the broader employment landscape.

Key projections at a glance

The following table summarises Fitch's core projections for the U.S. economy:

Labor market and inflation outlook

Fitch noted that labor demand has weakened and job creation has dropped significantly in 2026, signaling a material shift in employment conditions compared to the prior period. On the inflation front, the agency expects price pressures to move toward target by year-end 2028, suggesting a gradual easing over the forecast horizon.