Ford CEO Jim Farley has a question about President Donald Trump’s threatened tariffs on imports from Mexico, Canada, and China: Why stop there?<\/p>\n
Farley expressed his concerns in a conference call on Wednesday, stating that Trump’s selective approach “doesn’t make sense.”<\/p>\n
\u201cWhy are we having this conversation while Hyundai-Kia is importing 600,000 units in the U.S. with no incremental tariff? And why is Toyota able to import a half a million vehicles in the U.S. with no incremental tariffs?\u201d Farley questioned. \u201cIf we\u2019re going to have a tariff policy that lasts for a month, or whatever it\u2019s going to be, years \u2014 it better be comprehensive for our industry. We can\u2019t just cherry pick one place or the other, because this is a bonanza for our import competitors.\u201d<\/p>\n
In a statement, Ford spokesperson Ian Thibodeau clarified that Farley was not calling for more tariffs.<\/p>\n
\u201cHe was explaining that what\u2019s currently on the table would negatively affect only some global automakers that import parts or vehicles from North America,\u201d Thibodeau said. \u201cThat, while companies from Korea, Japan and Germany would be able to continue to import vehicles to the U.S. without a similar penalty.\u201d<\/p>\n
Farley’s more protectionist thinking comes at a tricky time for Ford.<\/p>\n
The company announced Wednesday that it lost more than $5 billion on its EV program in 2024. Its electric pickup truck, the F-150 Lightning, was outsold last year by the Cybertruck. The company is developing a low-cost EV platform that could power a number of vehicles, but it\u2019s still years away. And while the company beat Wall Street expectations for 2024, it forecasted a rougher year ahead.<\/p>\n
In the meantime, Ford confirmed it is looking to expand into offering \u201cextended range\u201d hybrid powertrains (essentially electric vehicles with a gas generator on board) in order to win over buyers who don\u2019t want to go all-in on battery power.<\/p>\n
But first, it has to navigate the chaos created by the Trump Administration.<\/p>\n
Farley warned that the proposed 25% tariffs on imports from Mexico and Canada would cause \u201cbillions of dollars\u201d of industry profits to be \u201cwiped out,\u201d would have an \u201cadverse effect on the U.S. jobs\u201d in the auto sector, and would mean \u201chigher prices\u201d for customers.<\/p>\n
If those tariffs are implemented and sustained \u2014 a big \u201cif,\u201d considering Trump has already punted the deadline to implement them a month \u2014 Farley said they would have a \u201cdevastating impact.\u201d<\/p>\n
And yet, Farley said he believes the administration is \u201ccommitted to strengthening, not weakening our nation\u2019s auto industry.\u201d<\/p>\n