Ford CEO says Trump's tariffs are causing 'chaos' in auto industry
President Donald Trump’s tariffs, both implemented and just threatened, are causing “chaos” for the U.S. automotive industry, according to Ford Motor CEO Jim Farley.
DETROIT — President Donald Trump’s tariffs, both implemented and just threatened, are causing “chaos” for the U.S. automotive industry, according to Ford Motor CEO Jim Farley.
The chief executive of America’s second-largest automaker described 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding “a lot of cost, and a lot of chaos” to the industry.
“President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,” Farley said Tuesday during a Wolfe Research conference. “So far what we’re seeing is a lot of cost, and a lot of chaos.”
Farley and incoming Ford CFO Sherry House said a majority of the company’s steel and aluminum are domestically sourced; however, there are suppliers to the automaker that source such materials from outside of the country, which could have an impact on costs.
House said the biggest concern for the company is all of these actions that appear relatively minimal, including on suppliers, combining to negatively impact the automaker’s business.
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