Ford CEO says there are tariffs that bring “many costs and lots of chaos”
John Lonesky Group’s president, while appearing in “Varney & Co.”, breaks down President Donald Trump’s economic agenda.
Ford CEO Jim Farley said the president on Tuesday Donald Trump’s The push for tariffs has so far brought “many costs and lots of disruption” to the automotive industry, despite its aim to support the president’s industry.
“President Trump has spoken a lot about strengthening the US automotive industry, bringing more production here and innovation in the US. If this administration can achieve that, it’s the most signed achievement. It’s going to be one of those,” Farley told analysts. Meeting in Detroit.
“What we’re seeing so far is a lot of costs and a lot of confusion,” he added.
Farley also has 25% of Trump. Mexican and Canada tariffs It can “blew a hole” into the US automotive industry as it is implemented, remains effective for the long term, and its Asian and European rivals are ready to benefit.
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Ford CEO Jim Farley warned that tariffs in Mexico and Canada will “pull holes” in the US automotive industry for the long term. (Getty Images/Emily Elconin via Getty Images/Bloomberg)
“Let’s be really honest: in the long run, a 25% tariff will make a hole across the Mexico-Canadian border. US Industry Farley said. “Frankly, it gives businesses in Korea, Japan and Europe the free reins, bringing 1.5 million to 2 million vehicles to the US and not subject to those Mexican and Canadian tariffs. This is It’s one of the biggest atriums for businesses to date.”
“On the other hand, we USMCA compliant Almost all of our content is completed vehicles and components across the border. Having some sort of tariffs would be devastating,” Farley said.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| f | Ford Motor Co. | 9.21 | -0.03 |
-0.32% |
| GM | General Motors Co. | 46.70 | +0.13 |
+0.28% |
| stress | Stellantis NV | 13.10 | +0.12 |
+0.96% |
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Ford CEO Jim Farley warned that foreign automakers will benefit if Trump’s 25% tariffs are implemented in Mexico and Canada. (Photographer: Getty Images/Emily Elconin via Getty Images/Bloomberg)
The Dearborn, Michigan-based automaker is less exposed to fallout from tariffs in Canada and Mexico than its rivals General Motors and Stellantis, a parent company for brands such as Jeep and Dodge. Not there.
That’s from many of Ford Manufacturing base Vehicles located within the US and imported from abroad tend to be less profitable than their competitor imported products.
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Ford executives said the pending tariffs are not so harmful to the business as the company procures much of its steel and aluminum domestically. (Jeff Kowalski/Getty Images)
Ford is considering areas where it can build inventory to prepare for a 25% potential tariff in Mexico and Canada, executives said Tuesday.
These tariffs were scheduled to come into effect in early February, but Trump delayed them until at least March after Canada and Mexico announced border security measures.
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Trump’s announcement of tariffs on steel and aluminum, which are expected to take effect next month, Ford executives It should be noted that the company has 90% of its steel from the US and about 10% from Canada, but its aluminum is also sourced primarily domestically.
Reuters contributed to this report.