Ford CEO calls tariff policy 'bonanza for our import competitors'
Jim Farley notes fair application is essential to U.S. companies
Ford CEO Jim Farley called the recent tariff strategy outlined by President Trump “a bonanza for our import competitors.”
In response to analyst questions during an earnings call late Wednesday, Farley questioned what’s ahead for U.S. automakers amid plans to implement 25% tariffs on products from Mexico and Canada.
In the immediate term, Ford is fine, Farley said. But thereafter, it’s potentially tricky.
More than 80% of Ford vehicles are made in the U.S., 100% of Ford transmissions and more than half the Ford engines, Farley said. “You look at our competitors and they’re like a country mile away from that.”
Ford plants in the U.S. are busy now and a dramatic change in tariff policy long term would require “some major strategy shifts” Farley said. “Obviously, it’s a devastating impact.”
The next trigger date for implementing the tariffs on Mexico and Canada is March 1.
He continued, “What doesn’t make sense to me is why we’re having this conversation while Hyundai-Kia is importing 600,000 units (from South Korea) into the U.S. with no incremental tariff and why is Toyota able to import a half a million vehicles (from Japan) into the U.S. with no incremental tariffs? I mean, there are millions of vehicles coming into our country that are not being applied to these — So, if we’re going to have a tariff policy … it better be comprehensive for our industry. We can’t just cherry-pick one place or the other because this is a bonanza for our import competitors.”
Farley was recruited from Toyota by then-CEO Alan Mulally. Farley understands the global automotive industry and trade, having worked all over the world.
In 2023, Japan accounted for about $40 billion worth of U.S. vehicle imports and South Korea accounted for about $31 billion worth of U.S. vehicle imports, based on a report from the Idaho-Statesman using U.S. Census data.
Today, Ford builds the Ford Mustang Mach-E and Ford Maverick pickup in Mexico. Ford Super Duty Trucks is scheduled to begin building in Canada in 2026.
In 2023, about one in seven vehicles Ford assembled in the U.S. was exported to international markets including Canada, Mexico, China, Puerto Rico and South Korea.
Trump has implemented a 10% tariff on all U.S. imports from China. That country is responding with counter-tariffs.
Read more: President Trump calls Bill Ford ‘Out of the Blue’
Read more: Ian autos, it’s Ontario vs. the World
PS: As a proud member of the Iowa Writers’ Collaborative, a roundup of world-class journalists, I hope you’ll check out the column link to news, commentary and features.
Well, I clicked on the "Like" button, but, obviously, I don't like what's in store with these asinine tariffs. President McKinley tried tariffs with the good-hearted aim of protecting American workers, but he was a big enough man to admit they were a big mistake. Funny how our current president isn't up to speed on what Paul Harvey used to call "the rest of the story."