Ford CEO Blasts Unfair Tariff System, Calls for Comprehensive Policy
Ford Motor Company CEO Jim Farley has criticized President Trump's tariff plans, arguing that their selective targeting of certain countries is unfair.
During Ford's Q4 earnings call, Farley expressed concern that prolonged tariffs on imports from Mexico and Canada, where Ford and GM have vehicle production facilities, would severely impact the industry. He stressed the need for a comprehensive tariff policy that applies to all imported vehicles.
Farley singled out automakers such as Hyundai-Kia and Toyota, which import vehicles into the U.S. without paying significant tariffs. He questioned why some manufacturers benefit from preferential treatment while domestic producers face higher costs.
"What doesn't make sense to me is why we're having this conversation while Hyundai-Kia is importing 600,000 units into the US with no incremental tariff, and why is Toyota able to import a half a million vehicles into the US with no incremental tariffs?" said Farley.
Toyota currently pays a small 2.5% tariff on vehicles imported from Japan, despite not facing significant barriers in the past. Hyundai and Kia, meanwhile, import a substantial portion of their vehicles from Korea, where they benefit from a free-trade agreement with the U.S.
Farley acknowledged that Ford is facing other challenges beyond tariffs, including declining stock prices and concerns about market factors. However, he emphasized that the company's domestic production capabilities and strong UAW workforce position it favorably in the event of a trade war.
The CEO's criticism of the current tariff system highlights the complex and often contradictory nature of trade policy. While Trump's focus on immediate neighbors may serve certain political objectives, it also raises concerns about fairness and the potential impact on the automotive industry.