Ford CEO Expresses Optimism Over Auto Industry Tariffs Talks

DETROIT, MICH.— Ford Motor Company CEO Jim Farley is feeling hopeful about the auto industry's ability to respond to the tariff threats from U.S. President Donald Trump. Farley believes that the industry can navigate these challenges without causing serious harm to the intertwined North American automotive market.

At a media event prior to the 2025 Detroit Auto Show, Farley noted, "Even though Ford is the No. 1 assembler of vehicles in the United States, a lot of our supply chains depend on global sources.” His comments highlight the crucial interdependence of automotive manufacturing in North America.

Challenges of Tariffs

Farley warned that tariffs can pose significant obstacles for businesses. He expressed confidence that Ford, as a leading player in the industry, will engage with the Trump administration to address these issues. "I’m very optimistic based on our conversations so far, that we’ll be able to make progress," Farley stated.

One of the company’s concerns is about a potential blanket 25 percent tariff on imports from Canada and Mexico, which could disrupt Ford's extensive supply chain and production capabilities.

Building Relationships

Farley confirmed that Ford’s chair, Bill Ford, has already had discussions with President Trump to emphasize Ford's significant contributions to American manufacturing. "We produce more vehicles in the United States than anyone and export more vehicles than anyone," he said. Farley urged for collaboration to strengthen the automotive sector.

Lobbying for Policies

In addition to tariffs, Farley mentioned that Ford is advocating for the preservation of critical components of the Inflation Reduction Act (IRA). Trump has expressed intentions to dismantle support packages meant to stimulate investment in electric vehicle (EV) and battery manufacturing.

“The production credit is critical for our industry,” Farley emphasized. Losing this support could negatively impact Ford's operations, particularly as many of its factories in the Midwest transition to producing electric vehicles. He cited the construction of the facility in Marshall, Michigan, which is largely made possible due to the production tax credit.

Future of Electrification and Regulations

As the industry progresses towards electrification, Farley anticipates that the Trump administration will clarify timelines for stricter emissions standards and electric vehicle mandates. He noted, "It’s essential that regulations align with customer readiness, which will be a balancing act this year."

Farley also pointed out Ford's strong position in both the electric vehicle market, where it ranks second behind Tesla, and hybrid sales, where the company is third. He underscored that Ford’s hybrid trucks have carved out a unique market niche, resulting in increased customer interest in hybrid technology.

Ford, Trump, tariffs, electric, manufacturing