Ford CEO Warns 25% Tariffs on Canada, Mexico Could Devastate U.S. Auto Industry

Potential Tariffs Threaten Unprecedented Impact on American Car Manufacturers

Ford Motor Company’s CEO, Jim Farley, expressed deep concerns on February 11 (local time), stating that the proposed 25% tariffs on Canadian and Mexican imports by the Trump administration could deliver an unprecedented blow to the U.S. automotive industry. Speaking at an automotive industry conference hosted by Wolfe Research in New York, Farley emphasized the severe economic consequences such tariffs could trigger, as reported by Bloomberg.

Farley recalled President Donald Trump’s promises to strengthen the U.S. automotive sector and boost domestic car production. However, he criticized the current trajectory, pointing out that “what we’re actually seeing now are rising costs and significant disruption.” According to Farley, the long-term imposition of a 25% tariff on goods from Canada and Mexico would result in damage that the U.S. auto industry has never experienced before, warning that it could undermine the very goals Trump set out to achieve.

Adding to his concerns, Farley highlighted that such tariffs could inadvertently benefit Asian and European competitors, who would not face similar trade barriers. This disparity could create a competitive advantage for foreign automakers, allowing them to capture a larger share of the U.S. market while American manufacturers grapple with increased costs and logistical challenges.

Regarding the additional 25% tariffs on steel and aluminum, scheduled to take effect on March 12, Farley noted that while Ford sources most of these materials domestically, some suppliers rely on imported metals. This dependency means the new tariffs will inevitably drive up manufacturing costs, further straining the company’s operations and supply chain.

Farley plans to meet with federal lawmakers and government officials in Washington, D.C., on February 12 to discuss the negative impact of the Trump administration’s tariff policies on the U.S. auto sector. His visit aims to advocate for reconsideration of the tariffs and to highlight the potential risks to jobs, manufacturing, and the broader American economy.

Trump initially announced the 25% tariffs on Canada and Mexico earlier this month, citing national security concerns related to border security and the influx of fentanyl. However, after receiving commitments for corrective measures from both countries, the administration decided to delay the tariff implementation by one month. Despite this temporary reprieve, uncertainty continues to loom over the industry as automakers brace for possible policy shifts that could reshape the future of U.S. automotive manufacturing.