Tariffs Would ‘Blow a Hole’ in U.S. Auto Industry, Says Ford CEO

The CEO of Ford Motor Jim Farley met with U.S. lawmakers on February 12 after saying that 25% tariffs on U.S. imports from Mexico and Canada would "blow a hole" in the U.S. auto industry. The tariffs, after a delay, are set to come into effect March 4. A further 25% tariff on all steel and aluminum imports, which is also likely to impact automakers, is set to be implemented March 12.

According to Reuters, Farley met with Senators Roger Marshall, Elissa Slotkin, Deb Fischer and many House of Representatives lawmakers after warning February 11 that the tariffs could devastate U.S. automakers’ business, and instead benefit rival foreign car companies.

Farley said in a statement after the meetings the automaker shares President Donald Trump's goal of creating a thriving U.S. auto industry and looks forward to "continuing the dialogue with the administration and lawmakers about how best to achieve this vision." He said that if Trump is successful, it could be one of his most signature accomplishments.

"What we're seeing is a lot of cost, a lot of chaos," Farley said on February 11 at a Wolfe Research conference. "If you look at the tariffs, let's be real honest, long term, a 25% tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen. Frankly, it gives free reign to South Korean, Japanese and European companies that are bringing 1.5 million to 2 million vehicles into the U.S. that wouldn’t be subject to those Mexican and Canadian tariffs. It would be one of the biggest windfalls for those companies ever.”

Farley also warned that, if Congress rescinds incentives for electric vehicles, it could put jobs at risk after Ford made significant investments in battery production and assembly plants in Ohio, Michigan, Kentucky and Tennessee.

Republican lawmakers introduced a pair of bills on February 12 to rescind EV tax credits and impose a $1,000 tax on new EVs to pay for road repairs.