Ford CEO Jim Farley has a question about President Donald Trump’s threatened tariffs on imports from Mexico, Canada, and China: Why stop there?
Farley said in a conference call Wednesday that Trump’s selective approach “doesn’t make sense.”
“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 questioned. “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. We can’t just cherry pick one place or the other, because this is a bonanza for our import competitors.”
In a statement, Ford spokesperson Ian Thibodeau said Farley “wasn’t calling for more tariffs.”
“He was explaining that what’s currently on the table would negatively affect only some global automakers that import parts or vehicles from North America,” Thibodeau said. “That, while companies from Korea, Japan and Germany would be able to continue to import vehicles to the U.S. without a similar penalty.”
Farley’s more protectionist thinking comes at a tricky time for Ford.
The company announced Wednesday that it lost more than $5 billion on its EV program in 2024. Its electric pickup truck, the F-150 Lightning, was outsold last year by the Cybertruck. The company is developing a low-cost EV platform that could power a number of vehicles, but it’s still years away. And while the company beat Wall Street expectations for 2024, it forecasted a rougher year ahead.
In the meantime, Ford confirmed it is looking to expand into offering “extended range” hybrid powertrains (essentially electric vehicles with a gas generator on board) in order to win over buyers who don’t want to go all-in on battery power.
But first, it has to navigate the chaos created by the Trump Administration.
Farley warned that the proposed 25% tariffs on imports from Mexico and Canada would cause “billions of dollars” of industry profits to be “wiped out,” would have an “adverse effect on the U.S. jobs” in the auto sector, and would mean “higher prices” for customers.
If those tariffs are implemented and sustained — a big “if,” considering Trump has already punted the deadline to implement them a month — Farley said they would have a “devastating impact.”
And yet, Farley said he believes the administration is “committed to strengthening, not weakening our nation’s auto industry.”
“They understand and appreciate how vital our industry is to jobs, the economy, our national security and the communities across our country,” Farley said.