Ford CEO\’s Outrage Over Trump\’s Tariff Deals Favoring Foreign Competitors

Ford CEO Warns of Tariff Impact on US Automakers

Ford CEO Jim Farley has raised concerns about the impact of President Donald Trump\’s tariff policies on American carmakers, stating that these measures are harming domestic manufacturers while providing an unfair advantage to foreign competitors. As one of the leading automakers in the United States, Ford produces 80% of its vehicles domestically. However, Farley argues that the company is bearing a heavier burden due to the complex and layered nature of tariffs.

The Burden of Layered Tariffs

Farley explained that Ford imports various essential components, including wiring, fasteners, carpets, steel, and aluminum, which are subject to multiple tariffs. These tariffs can reach as high as 50%, creating a significant financial strain on the company. In contrast, Japanese automakers like Toyota and Honda face a flat 12.5 to 15% tariff on fully built cars imported from Japan. This discrepancy highlights the uneven playing field that Farley claims exists for American manufacturers.

The situation is further complicated by additional tariffs imposed on goods from China and the high rates on steel and aluminum. Farley described these as \”stackable tariffs,\” which accumulate and increase the overall cost of production. He emphasized that this situation is not fair, especially since Ford is heavily invested in U.S. manufacturing and relies on a large number of imported parts.

Financial Impact on Ford

The financial implications of these tariffs are substantial. Ford reported an $800 million tariff hit in the second quarter of 2025 alone, with Farley expecting the total to rise to $2 billion by the end of the year. He also noted that if Ford only used American suppliers for parts, the price of its best-selling F-150 would increase by $100 to $200 per month. This has already led to a 20% reduction in profits due to these tariffs.

Farley remains optimistic about finding a solution but acknowledges the current challenges. He stated that he is in constant communication with the Trump administration, hoping for a resolution that would alleviate the financial pressure on Ford and other American automakers.

Broader Implications

Farley compared the effects of tariffs to a baseball game, suggesting that the U.S. economy is still \”in the bottom of the first inning\” when it comes to feeling their full impact. He acknowledged that while these policies were well-intentioned, they may lead to issues such as inflation or delays in production.

The criticism of Trump\’s trade agreements extends beyond Ford. The American Automotive Policy Council has also expressed concerns, calling the trade deals a \”bad deal for US industry and US auto workers.\” Matt Blunt, head of the agency representing Detroit\’s Big Three automakers, criticized the lower tariffs for Japanese imports, highlighting the disparity between tariffs on foreign and domestic vehicles.

Industry-Wide Challenges

While Ford is in a relatively better position compared to its competitors, other automakers are facing significant challenges. General Motors (GM) CEO Mary Barra anticipates a tariff bill of $4 billion to $5 billion by the end of the year. Stellantis, the parent company of Chrysler, Jeep, and Dodge, has experienced profit declines and workforce reductions.

Farley is unsure how these tariffs will affect consumers, but he believes that all cars will become more expensive. He told The Verge that it is too early to tell, but generally, tariffs will result in higher premiums for products made in the U.S.

Rising Vehicle Prices

The average price of a new vehicle sold in America recently surpassed $50,000. Analysts predict that prices will continue to rise as more 2026 model year vehicles arrive at dealerships. While Ford has not commented on the specific concerns raised by the Daily Mail, the broader implications of these tariffs are clear.