Ford CEO Urges Trump: Don't 'Cherry-Pick' Tariffs, Auto Industry Faces Billions in Threat

Ford CEO Jim Farley has a message for President Trump: don't 'cherry-pick' tariffs. The auto industry is facing a multibillion-dollar threat, and Farley is urging the Trump administration to take a more comprehensive approach to trade policies. In an interview with CNBC, Farley warned that the current approach of targeting specific countries, such as Canada and Mexico, with tariffs is putting the U.S. auto industry at a disadvantage.

Farley's concern is that the current tariff policy allows Japanese and South Korean automakers to import vehicles with little to no duties, while U.S. automakers like Ford face higher tariffs on their imports. This, he argues, gives foreign competitors an unfair advantage in the U.S. market. "There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs]," Farley said. "So if we're going to have a tariff policy... it better be comprehensive for our industry."

The issue of tariffs comes amid uncertainty on how the new administration will approach vehicle emissions regulations and electrification. There's also increasing pressure from China, which Farley conceded was building great cars after test driving one himself. But amid the uncertainty, he emphasized that Ford was still in control of its future. "While we are certainly operating in interesting times, at the end of the day, we control our destiny," he said.

The auto industry is staring down a crisis. Donald Trump's sweeping new tariffs on imports from Canada, Mexico, and China threaten to upend supply chains, raise car prices, and force automakers to make difficult decisions about production. The 25% tariff on North American imports and the 10% tariff on Chinese goods, set to take effect this week, will hit nearly every car manufacturer operating in the U.S.

The industry has spent decades integrating North American production, making these tariffs not just a tax on imports, but a tax on the entire industry. Automakers like GM, Toyota, Tesla, and Ford face higher costs, with production delays and possible layoffs. The U.S. auto industry is in turmoil as companies scramble to adjust or absorb losses.

Farley's call for a comprehensive tariff policy is a recognition of the interconnected nature of the global auto industry. By applying tariffs to all countries, the U.S. can level the playing field for domestic automakers and encourage domestic production. This would have positive effects on U.S. employment and the overall economy. However, it also carries risks, such as retaliation from other countries and supply chain disruptions.

In conclusion, Ford CEO Jim Farley's call for a comprehensive tariff policy highlights the challenges facing the U.S. auto industry in the face of Trump's trade policies. By urging the Trump administration to take a more reasoned approach to tariffs, Farley is advocating for a policy that would benefit domestic automakers and the U.S. economy as a whole. However, the risks of retaliation and supply chain disruptions must also be considered. The auto industry is in a state of flux, and the outcome of Trump's trade policies will have significant implications for the industry and the U.S. economy.