Ford CEO Highlights Challenges from Trump Tariff Policies on Electric Vehicles
Uncertainty surrounding tariffs and electric vehicle incentives is creating significant hurdles for Ford, CEO Jim Farley revealed on Tuesday. The automaker faces rising costs and operational chaos, with potential job losses looming if governmental incentives are revoked.
Farley criticized the Trump administration for introducing “policy uncertainty” despite the president’s rhetoric on boosting U.S. manufacturing. The fluctuating tariff strategies and ambiguous stance on EV tax credits have left companies like Ford navigating a complicated landscape.
During a recent financial conference, Farley labeled Trump’s proposal to impose 25% tariffs on imports from Mexico and Canada as “a disaster” for American businesses operating within the region. He argued that such measures unfairly benefit European and Asian automakers who also import vehicles into the United States.
In a move last week, Trump temporarily halted tariffs for 30 days after Mexico and Canada agreed to make concessions. However, the tariffs remain a threat as the administration revealed plans to enact 25% tariffs on steel and aluminum.
Farley noted that while Ford sources most of these metals from U.S. suppliers, the company’s broader supply chain includes international partners. “So that price will come through, and there may be a speculative part of the market where prices come up because tariffs are even rumored,” he explained.
“President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation,” Farley stated, referring to what he hopes will be “signature accomplishments.” Despite these ambitions, he added, “so far, what we’re seeing is a lot of costs and chaos.”
The CEO also expressed concerns regarding the future of the Biden administration’s Inflation Reduction Act (IRA), which provides tax incentives for electric vehicle purchases and the establishment of EV factories. An executive order issued on Trump’s first day hinted at the possible elimination of these EV-focused tax credits.
Farley emphasized that Ford has already “sunk capital” into significant investments across Ohio, Michigan, Kentucky, and Tennessee. He warned that “many of those jobs will be at risk if the IRA is repealed or if big parts of it is repealed.”
