John Lonesky Group’s president, while appearing in “Varney & Co.”, breaks down President Donald Trump’s economic agenda.
Ford CEO Jim Farley said on Tuesday that President Donald Trump’s tariff push has aimed to support the president’s industry so far, but has so far “many costs.” He said it brought a lot of confusion to the automotive industry.
“President Trump has spoken a lot about strengthening the US automotive industry, bringing more production here and innovation in the US. If this administration can achieve that, it’s the most signed achievement. It will be one of those,” Farley told analysts. Meeting in Detroit.
“What we’re seeing so far is a lot of costs and a lot of confusion,” he added.
Farley also said it would “hole the US automotive industry as 25% of Trump’s tariffs are in place in Mexico and Canada and are ready to benefit if it is in effect in the long term, as Asian and European rivals are ready to benefit. “You can open it.”
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Ford CEO Jim Farley warned that tariffs in Mexico and Canada will “pull holes” in the US automotive industry for the long term. (Getty Images/Emily Elconin via Getty Images/Bloomberg)
“Let’s be honest. In the long run, the 25% tariffs across the Mexico-Canada border will blow away holes in the US industry that we’ve never seen,” Farley said. . “Frankly, it gives businesses in Korea, Japan and Europe free reins and brings 1.5 million to 2 million vehicles to the US that are not subject to those Mexican and Canadian tariffs. Company.”
“On the other hand, we are USMCA compliant with almost all of our content, finished vehicles and components cross the border. Having some sort of tariff is devastating,” Farley said.
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Ford CEO Jim Farley warned that foreign automakers will benefit if Trump’s 25% tariffs are implemented in Mexico and Canada. (Photographer: Getty Images/Emily Elconin via Getty Images/Bloomberg)
The Dearborn, Michigan-based automaker is less exposed to fallout from tariffs in Canada and Mexico than its rivals General Motors and Stellantis, a parent company for brands such as Jeep and Dodge. Not there.
This is because many of Ford’s manufacturing bases are located within the US, and vehicles imported from abroad tend to make less profitable than their competitor imported products.
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Ford executives said the pending tariffs are not so harmful to the business as the company procures much of its steel and aluminum domestically. (Jeff Kowalski/Getty Images)
Ford is considering areas where it can build inventory to prepare for a 25% potential tariff in Mexico and Canada, executives said Tuesday.
These tariffs were scheduled to come into effect in early February, but Trump delayed them until at least March after Canada and Mexico announced border security measures.
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Trump’s announcement of tariffs on steel and aluminum, which is expected to take effect next month, has been discussed with Ford executives who say the company is gaining 90% of steel from the US and about 10% from Canada However, the company’s aluminum is also procured mainly domestically.
Reuters contributed to this report.
