Ford Motor Company CEO Jim Farley expressed his views on tariffs impacting the automotive sector during a recent earnings call, emphasizing the need for a broad and equitable tariff policy. Farley highlighted that the Trump administration should consider a comprehensive approach rather than selectively targeting certain countries. He pointed out that automakers like Toyota and Hyundai import significant numbers of vehicles from Japan and South Korea, respectively, often without facing the same tariffs that have been proposed for Canada and Mexico.
Farley remarked, “There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs].” He stressed the importance of not favoring one region over another, which he believes could create an unfair advantage for foreign competitors. His comments came on the heels of the Trump administration imposing a 10% additional tariff on goods from China, including automobiles, while ongoing discussions continue regarding potential 25% tariffs on imports from Canada and Mexico.
Ford has long promoted its commitment to U.S. manufacturing and job creation, noting that it employs more American workers than any other automaker. However, the company faces challenges due to the competitive landscape, where a significant portion of vehicles sold in the U.S. are produced overseas. According to GlobalData, nearly 47% of all vehicles sold in the U.S. last year were manufactured outside the country, with South Korea and Japan being the second and third-largest sources of imports, following Mexico.
Currently, vehicles imported from South Korea face no tariffs, while those from Japan are subjected to a 2.5% duty, with trucks incurring a 25% tariff. Automakers such as General Motors, Nissan, and Honda also import vehicles from these countries, often taking advantage of the lower or nonexistent tariffs. Farley’s remarks underscore the complexities of trade policies and their implications for the automotive industry.
