Ford CEO Jim Farley expressed deep concern over the potential impact of President Donald Trump’s proposed 25% tariff on steel and aluminum imports from Canada and Mexico, warning that it would “blow a hole” in the US auto industry. The tariffs could benefit foreign competitors and disrupt the transition to electric vehicles, according to Farley.
The CEO emphasized that the long-term effects of the tariffs would be devastating for American automakers, including Ford. He noted that 1.5 million to 2 million vehicles from South Korean, Japanese, and European companies would enter the US market without tariffs, giving them a significant advantage over domestic competitors.
Farley also highlighted the potential repeal of parts of the Inflation Reduction Act, which has been beneficial for automakers selling electric vehicles. The production tax credit, in particular, allows businesses to reduce taxes based on electricity generation from solar and other sources, and Ford is building factories to take advantage of it.
Industry analysts and executives, including General Motors CEO Mary Barra, have prepared contingency plans to mitigate the effects of the tariffs. However, Farley warned that the uncertainty and potential for cost increases could disrupt the auto industry’s transition to electric vehicles.
With the proposed tariffs set to be announced soon, Ford is bracing itself for the impact on its business and the wider industry.
Source: https://eu.freep.com/story/money/cars/ford/2025/02/11/ford-ceo-jim-farley-tariffs-auto-industry/78414492007