Ford Motor and General Motors are evaluating the effects of new U.S. tariffs on steel and aluminum imports, with each company taking a different approach to handling potential cost increases.
The Trump administration officially imposed a 25% tariff on all steel and aluminum imports earlier this week, following a temporary exemption for Mexico and Canada. Ford CEO Jim Farley described the move as bringing “cost and chaos” to the auto sector, while GM CEO Mary Barra stated that the automaker could mitigate up to 50% of the tariffs’ impact, according to Automotive News.
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“President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation to the U.S., and if this administration can achieve that, it would be, I think, one of the most signature accomplishments,” Farley said during an event on Tuesday. “So far, what we’re seeing is a lot of cost and a lot of chaos.”
Ford, which sources most of its steel and aluminum domestically, is taking steps to manage potential supply disruptions, including building up inventory in anticipation of broader tariffs that could be imposed on imports from Mexico and Canada. Executive Chairman Bill Ford has expressed optimism about the administration’s plans, saying Trump “clearly understands the importance of [the auto] industry” and wants to be “helpful.”
GM has adopted a more measured stance. Barra indicated that the company has strategies in place to offset 30% to 50% of the additional costs, without requiring additional capital expenditures. “We are prepared when we know exactly what’s going to happen,” Barra said. “Of course, if tariffs are longer, there’s additional things that we’ve studied that we know we can do from a capital-efficient way.”
The Trump administration has also implemented a 10% tariff on imports from China. It remains unclear whether broader tariffs on Mexico and Canada will proceed, as the White House has tied any delay to increased military involvement in border security efforts.