General Motors (GM) and Ford Motor CEO Mary Barra have expressed confidence in mitigating up to 50% of potential North American tariffs threatened by President Donald Trump. The company has contingency plans ready for if tariffs are levied on auto parts and vehicles coming into the US from Canada and Mexico.
Barra said GM is prepared to take steps to avoid short-term impacts of between 30-50% additional costs without deploying capital. The Detroit automaker sources a significant amount of steel and aluminum from the US, with fixed pricing in place for such purchases.
Ford CEO Jim Farley described Trump’s tariffs as causing “chaos” for the US automotive industry. He noted that a majority of Ford’s steel and aluminum are domestically sourced, but suppliers from outside the country could have an impact on costs. Farley expressed concerns about potential duties on goods from Mexico and Canada, which he called “devastating.”
GM has operations in both Canada and Mexico, with many lower-priced electric vehicles and profitable full-size pickup trucks produced in these countries. The company’s CFO, Paul Jacobson, said if tariffs were prolonged, GM could take additional measures such as shifting production or parts.
Both companies contributed $1 million each to Trump’s inauguration and have spoken with the president about the auto industry. However, Ford is taking a more aggressive approach to addressing the issue, with CEO Farley traveling to Washington, DC, for the second time in three weeks to meet with government officials.
Source: https://www.cnbc.com/2025/02/11/ford-ceo-says-trumps-tariffs-are-causing-chaos-in-auto-industry.html