Ford CEO Jim Farley criticized President Trump's tariff policies, arguing they are causing 'cost and chaos' in the U.S. auto industry. He warned that 25% tariffs on Mexico and Canada would be 'devastating' for American automakers, giving an advantage to foreign competitors. Despite being less exposed than rivals, Ford is taking steps to prepare for potential tariff increases.
Ford CEO Jim Farley expressed concerns Tuesday about the impact of President Donald Trump's tariff policies on the auto industry. While acknowledging Trump's stated goal of strengthening the U.S. auto sector, Farley stated that the tariffs have instead brought 'a lot of cost and a lot of chaos' to the industry. He argued that long-term implementation of a 25% tariff on imports from Mexico and Canada would significantly harm the U.S.
auto industry, giving an advantage to Asian and European competitors. Farley explained that such tariffs would create a 'devastating' situation for American manufacturers like Ford, who are largely compliant with the U.S.-Mexico-Canada Agreement (USMCA).Ford, unlike rivals like General Motors or Stellantis, is less vulnerable to the fallout from these tariffs due to its larger U.S.-based manufacturing footprint and the nature of its imported vehicles. However, Farley emphasized the potential for significant losses if Trump's planned tariffs are implemented. He stated that the company is exploring ways to build up inventory in anticipation of these tariffs, which were initially scheduled for early February but have been delayed until at least March.The company is also closely monitoring the impact of Trump's announced tariffs on steel and aluminum, noting that 90% of its steel comes from the U.S. and aluminum is primarily sourced domestically. Farley's comments reflect the ongoing tension between Trump's protectionist trade policies and the complexities of the global automotive supply chain. The potential for tariffs to disrupt this chain and create economic instability remains a significant concern for industry players like Ford.
TRUMP TARIFFS AUTOMOTIVE INDUSTRY FORD JIM FARLEY USMCA GLOBAL TRADE
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Ford CEO Blasts Trump Tariffs as 'Devastating' for U.S. Auto IndustryFord Motor CEO Jim Farley has criticized President Donald Trump's tariffs and threats, claiming they are causing 'chaos' within the U.S. automotive industry. Farley expressed concerns over the announced 25% tariffs on steel and aluminum, as well as the potential imposition of similar tariffs on Mexico and Canada. He argued that these tariffs would significantly increase costs and disrupt the industry. While Ford sources a majority of its steel and aluminum domestically, Farley acknowledged that some suppliers rely on materials from outside the U.S., which could be impacted by these tariffs. He particularly highlighted the potential devastation of a 25% tariff on goods from Mexico and Canada, warning that it could 'blow a hole in the U.S. industry that we've never seen.'
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