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Ford CEO Jim Farley Defends Tariffs Despite $2B Cost Despite Tariffs, Ford CEO Jim Farley Remains Supportive of US Trade Policy
ByAinvest
Thursday, Jul 31, 2025 9:47 pm ET1min read
Ford CEO Jim Farley supports US tariffs despite a $2 billion cost to the company in 2025, with the tariffs expected to be a net headwind of $2 billion this year. Farley values a level playing field globally and has been working with the administration on trade policy. The tariffs shaved $800 million off Ford's Q2 EBIT, but US sales rose 5.4% YoY.
Ford Motor Company's CEO Jim Farley has expressed his support for US tariffs, despite the expected $2 billion cost to the company in 2025. The tariffs are anticipated to be a net headwind of $2 billion this year, according to Farley's recent statements [2].Farley underscored the importance of maintaining a level playing field globally and has been actively working with the administration on trade policy. Despite the financial impact, Ford's US sales rose 5.4% year-over-year in the second quarter, indicating resilience in the market [1].
The tariffs have had a significant impact on Ford's financials, with a $800 million reduction in its second-quarter EBIT. However, Ford's U.S. sales outperformed the industry, growing seven times faster than the rest of the auto sector in the second quarter [1].
Farley's stance is in stark contrast to fellow auto CEO Elon Musk, who has been an advocate for free trade and lower tariffs. While Farley acknowledges the challenges posed by tariffs, he remains committed to working with policymakers to ensure that US auto workers and customers are not disadvantaged by policy changes.
Farley's balanced approach reflects the complex political and economic landscape that Ford operates in. The company continues to navigate the challenges posed by tariffs and other economic uncertainties, while also investing in its future through initiatives such as the development of electric vehicles and the expansion of its commercial fleet business.
References:
[1] https://www.freep.com/story/money/cars/ford/2025/07/30/ford-q2-earnings-net-loss-predicts-big-impact-tariffs/85378500007/
[2] https://www.thestreet.com/automotive/ford-ceo-jim-farley-still-supports-us-tariffs-despite-hefty-cost
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