Ford CEO Highlights Challenges from Trump’s Tariff Policies and EV Incentive Uncertainty
Ford is navigating significant disruptions as the Trump administration’s tariff strategies and stance on electric vehicles (EVs) introduce increased costs and operational confusion, according to the company’s chief executive. Jim Farley warned that potential revocations of EV incentives could jeopardize numerous jobs.
Despite President Trump’s emphasis on bolstering U.S. manufacturing, the administration has created substantial “policy uncertainty” with fluctuating tariff plans and ambiguous signals regarding the continuation of tax credits that support EVs, Farley stated.
Speaking at a financial conference, Farley criticized Trump’s initial proposal to impose 25% tariffs on imports from Mexico and Canada, labeling it disastrous for American businesses operating in the region. He argued that such measures would unfairly benefit European and Asian automakers importing vehicles into the U.S.
Last week, tariffs on Mexico and Canada were suspended for 30 days after those countries made concessions. However, the threat remains as the administration revealed plans to enact 25% tariffs on steel and aluminum.
Farley mentioned that while Ford sources most of these metals from U.S. suppliers, the company’s suppliers also have international origins. “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 remarked, referring to these goals as “signature accomplishments.”
However, he added, “so far, what we’re seeing is a lot of costs and chaos.”
The CEO also highlighted ongoing uncertainties regarding the Trump administration’s approach to the Biden administration’s Inflation Reduction Act (IRA), which provides tax incentives for consumer EV purchases and the construction of EV manufacturing facilities.
An executive order issued on Trump’s first day in office indicated a possible removal of tax credits that benefit EVs.
Farley noted that Ford has already “sunk capital” into significant investments across Ohio, Michigan, Kentucky, and Tennessee. “Many of those jobs will be at risk if the IRA is repealed or if big parts of it is repealed,” he cautioned.