Ford’s CEO Jim Farley is warning that new tariffs on imports from Mexico and Canada could be “devastating” for the US auto industry, saying they would create “chaos” and cost billions of dollars in profits. The additional 25% tariffs, which could go into effect as soon as March 1, are expected to impact Ford and other automakers, including General Motors and Stellantis.
Farley stated that President Trump’s administration has made promises to strengthen the US auto industry by bringing more production and innovation inside the country. However, so far, he claims that what they are seeing is increased costs and chaos, rather than progress.
Ford is trying to mitigate the impact of tariffs by increasing its inventory in the US. Although it is less exposed to the effects than some other automakers, Ford still expects to feel the pinch from suppliers affected by the tariffs.
The US auto industry is already struggling compared to China, where electric vehicles are booming and companies like BYD are expanding overseas, taking market share away from legacy automakers. Farley highlighted this trend, saying that China has become a “major force” in the industry, with billions of dollars in industry profits being wiped out due to the tariffs.
As the US auto industry faces increased challenges, it remains to be seen whether Trump’s policies will ultimately achieve their intended goal of strengthening the domestic industry.
Source: https://electrek.co/2025/02/11/ford-ceo-warns-trump-tariffs-will-blow-a-hole-in-us-auto-industry