Ford CEO Jim Farley is expressing concern over the potential impact of new tariffs on imports from Mexico and Canada. These tariffs, which could be implemented as early as March 1, have the potential to devastate the US auto industry, according to Farley.
During a Wolfe Research investment conference, Farley stated that President Trump’s goal of strengthening the US auto industry could be hindered by the additional costs and chaos created by these tariffs. Ford is already feeling the effects of the threats, with plans to build up inventory in the US to mitigate the impact.
While Ford may be less exposed than other automakers, such as GM and Stellantis, Farley acknowledged that the company will still be affected by the tariffs through impacted suppliers. The potential 25% tariffs from Canada and Mexico could wipe out billions of dollars in industry profits and have adverse effects on US jobs, Farley warned.
The US auto industry is already facing challenges from international competitors, particularly China, which Farley identified as a major force in the industry. Chinese automakers like BYD are rapidly expanding overseas and gaining market share, surpassing traditional automakers like Honda and Nissan in sales volume.
The decision to withdraw federal support for electric vehicles and impose tariffs on key trade partners could further hinder the US auto industry’s competitiveness. Ford, GM, and other US automakers have already delayed EV launches and other projects in response to the uncertainty caused by the tariffs, creating opportunities for overseas competitors to capitalize on the situation.
In conclusion, the potential impact of new tariffs on the US auto industry is a cause for concern, with Ford CEO Jim Farley warning of devastating consequences. The industry’s ability to compete with international rivals, particularly in the EV market, could be significantly impacted by these tariffs. The US auto industry will need to navigate these challenges carefully to maintain its position in the global market.
