Ford CEO Jim Farley expressed strong concerns about President Trump’s tariff plans, warning of their “devastating impact” on the U.S. auto industry. During Ford’s Q4 earnings call, Farley said tariffs on imports from Mexico and Canada—where Ford and GM produce vehicles—could erase billions in profits.
Calls for Comprehensive Tariff Policy
Farley criticized the uneven application of tariffs, highlighting the lack of penalties for automakers like Hyundai-Kia and Toyota.
- Hyundai-Kia: Imports 600,000 vehicles annually into the U.S. without additional tariffs due to a free-trade agreement with South Korea.
- Toyota: Imports 500,000 vehicles annually from Japan, paying only a minimal 2.5% tariff.
“If we’re going to have a tariff policy, it better be comprehensive for our industry,” Farley emphasized, adding that the current approach unfairly benefits foreign competitors.
Ford’s Position
Despite the tariff challenges, Farley believes Ford is better positioned than rivals due to its U.S.-centric manufacturing base, particularly for its F-Series trucks. However, Ford is grappling with other issues, including multiyear stock lows and missed profit guidance for 2025, driven by concerns over pricing, costs, and demand.