Ford CEO Farley weighs in on Trump tariff “cost and chaos”

US President Donald Trump’s proclivity to use tariffs as trade deal bargaining tools has drawn criticism from automotive industry commentators and analysts. Assuming the 25% tariffs on Mexican and Canadian goods are reinstated in March, a 5 February 2025 report by Jato Dynamics outlined a lose-lose scenario that would see price rises on all sides. The potential for similar measures against EU imports would disrupt all the US’ historically friendly major markets.

During Ford’s Q4 2024 earnings call, Chief Executive Jim Farley had questioned the wisdom of 100% tariffs on Chinese electric vehicles (EVs). An admirer of the technology produced by China’s new entrants like Xiaomi, albeit with reservations about data security and state-driven subsidies, he opined that US automakers should be able to go “toe-to-toe” in terms of product excellence. The implication is that tariffs distort fair competition to the detriment of consumers.