Ford CEO Jim Farley criticized President Donald Trump's tariff push on Mexico and Canada, saying it has caused 'a lot of cost and a lot of chaos' to the auto industry despite Trump's aims to strengthen it. Farley warned that long-term 25% tariffs would 'blow a hole' in the U.S. auto industry, giving an advantage to Asian and European rivals.
Ford CEO Jim Farley said Tuesday that President Donald Trump 's tariff push has so far brought "a lot of cost and a lot of chaos" to the auto industry despite the president's aims to help the industry. "President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation to the U.S.
Let's be real honest: Long term, a 25% tariff across Mexico and Canada borders would blow a hole in the U.S. industry that we have never seen," Farley said. "Frankly, it gives free rein to South Korean, Japanese and European companies that are bringing 1.5 million to 2 million vehicles into the U.S. that wouldn't be subject to those Mexican and Canadian tariffs. It would be one of the biggest windfalls for those companies ever.
The Dearborn, Michigan-based automaker is less exposed to fallout from tariffs on Canada and Mexico than its crosstown rival General Motors or Stellantis, the parent company of brands such as Jeep and Dodge, analysts said. That's because more of Ford's manufacturing base is located within the U.S. and the vehicles that it does import from outside the country tend to be less profit-rich than the products its rivals import.
Ford is considering areas in which it can build up inventory to prepare for potential 25% tariffs on Mexico and Canada, executives said Tuesday. Those tariffs were planned to take effect in early February, but Trump delayed them until at least March after Canada and Mexico announced border security measures.
TARIFFS AUTO INDUSTRY FORD DONALD TRUMP MEXICO CANADA
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