Ford CEO says Trump’s tariffs are causing “chaos” in the auto industry

Detroit – President Donald TrumpTariffs that are only being implemented and threatened are causing “chaos” to the US automotive industry. Ford Motor CEO Jim Farley.

The CEO of America’s second largest automaker explained 25% tariff on steel and aluminumwhich is currently threatening the same amount of taxation in Mexico and Canada as it adds “many costs and lots of confusion” to the industry.

“President Trump has spoken a lot about strengthening the US automotive industry, bringing more production here and more innovation in the US. If his administration can achieve that, It will be… one of the most signature achievements,” Farley said Tuesday. Wolf Research Council. “So far, what we’re seeing is a lot of costs and a lot of confusion.”

Farley and the next Ford CFO Shelley House said that the majority of the company’s steel and aluminum are sourced domestically. However, automakers have suppliers who source such materials from abroad, which could affect costs.

House said the company’s biggest concern is all of these actions that seem relatively minimal, including suppliers, combined to negatively impact the automaker’s business.

“We have to deal with that. That’s what I’m talking about the cost of chaos. A bit here, a bit there. …This is what we’re dealing with now.” Farley said.

Farley appears most worried about potential obligations on goods from Mexico and the US, with the long-term 25% tariffs that could take effect immediately on March 1st “catastrophic.” He said, “It will blow away the hole in the US industry.” I’ve never seen it. ”

Farley said he was traveling to Washington, D.C. on Wednesday. The second time in three weeks he met with government officials, including members of Congress, to highlight how policy uncertainty is affecting the industry.

Last week, Farley also said that if the Trump administration implements tariffs that affect the auto industry, it would be We look at every country in a “comprehensive” way.

Farley selects Toyota Motor and Hyundai Motor to import hundreds of thousands of vehicles from Japan every year. South Koreaeach has little obligation compared to 25% tariffs Plans to impose on Canada and Mexico.

Ford regularly promotes American businesses, including advertising campaigns. The company is the number one car producer in the United States, with most vehicles being assembled domestically and exported to other countries.