- Jim Farley, the CEO of Ford, said the Trump administration’s tariffs will hurt the auto industry.
- Trump’s tariffs on Mexico and Canada “would be devastating” for Ford, said Farley.
- Farley said South Korean, Japanese, and European automakers would benefit from Trump’s tariffs.
Jim Farley, the CEO of Ford, said President Donald Trump’s latest tariffs on Mexico and Canada could deal a serious blow to his company and the auto industry.
Farley, who was speaking at a conference organized by Wolfe Research in New York on Tuesday, said that while Trump has talked about making the “US auto industry stronger,” the president’s trade policies would hit Ford hard.
“So far, what we are seeing is a lot of cost and a lot of chaos,” Farley told conference attendees.
Trump announced on February 1 that he would impose 25% tariffs on Mexico and Canada. The tariffs, which were meant to take effect on February 4, were delayed by a month after both countries agreed to tougher border control measures.
“If you look at the tariffs, let’s be real honest, long term, a 25% tariff across the Mexico and Canadian border would blow a hole in the US industry that we have never seen,” Farley said on Tuesday.
“And it frankly gives free rein to South Korean and Japanese and European companies that are bringing 1.5 million to 2 million vehicles into the US that wouldn’t be subject to those Mexican and Canadian tariffs,” Farley added. “It would be one of the biggest windfalls for those companies ever.”
Farley added that Ford has made sure its finished vehicles and components comply with the US-Mexico-Canada Agreement. But “to have that kind of size of the tariff would be devastating,” Farley said.
Representatives for Ford and the White House did not respond to requests for comment from Business Insider.
This isn’t the first time Farley has commented on Trump’s tariffs on Mexico and Canada. Ford, along with other automakers like General Motors and Toyota, donated $1 million to Trump’s inaugural fund.
Farley told investors during an earnings call on February 5 that “there is no question” the tariffs would have a “huge impact” on the auto industry and result in higher prices for customers.
“What doesn’t make sense to me is why are we having this conversation while Hyundai Kia is importing 600,000 units into the US with no incremental tariff, and why is Toyota able to import 0.5 million vehicles in the US with no incremental tariffs,” Farley said during the earnings call.
“So, if we’re going to have a tariff policy that lasts for a month or whatever it’s going to be years, it better be comprehensive for our industry,” Farley continued. “We can’t just cherry-pick one place or the other because this is a bonanza for our import competitors.”
On Monday, Trump announced 25% tariffs on all steel and aluminum imports. The US is the world’s largest importer of steel and gets its supply mainly from Canada, Mexico, and Brazil.
