Ford CEO Jim Farley raised concerns on Wednesday about the selective approach to President Donald Trump’s proposed tariffs on vehicle imports from Mexico, Canada, and China, suggesting the policy might inadvertently favor certain global automakers over others.
During a conference call, Farley questioned the rationale behind the proposed tariffs, asking why manufacturers like Hyundai-Kia and Toyota, which import large numbers of vehicles into the U.S., are not subject to additional tariffs. “Why are we having this conversation while Hyundai-Kia is importing 600,000 units in the U.S. with no incremental tariff? And why is Toyota able to import a half a million vehicles in the U.S. with no incremental tariffs?” Farley said. He argued that the tariffs, if implemented in a selective manner, would harm U.S. automakers, creating an unfair advantage for foreign competitors.
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In response, Ford spokesperson Ian Thibodeau clarified that Farley was not advocating for higher tariffs but rather highlighting the potential negative effects of the proposed tariffs on some global automakers. He noted that the policy would disproportionately impact companies that import parts or vehicles from North America, while others, particularly from Korea, Japan, and Germany, would continue importing without facing similar penalties.
The comments come amid Ford’s own challenges in the electric vehicle (EV) sector. The company announced a significant loss of over $5 billion on its EV program for 2024, with its electric F-150 Lightning pickup truck being outsold by Tesla’s Cybertruck last year. Despite this, Ford is looking to expand into hybrid powertrains and plans to develop a low-cost EV platform, though these initiatives are still years away.
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Farley also warned that the proposed 25% tariffs on imports from Mexico and Canada could result in “billions of dollars” in lost industry profits, potentially lead to job losses in the U.S. auto sector, and drive up vehicle prices for consumers. He emphasized the potential “devastating impact” of the tariffs but expressed hope that the administration remains committed to strengthening the U.S. auto industry, acknowledging its critical role in national security and the economy.