Ford’s CEO Jim Farley Warns of “Devastating” Consequences of Trump’s Tariffs on U.S. Auto Industry

Mark
Ford’s CEO Jim Farley Warns of "Devastating" Consequences of Trump's Tariffs on U.S. Auto Industry
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Ford’s CEO Jim Farley is raising alarms about the potential impact of tariffs on imports from Mexico and Canada, set to begin on March 1. He believes these new tariffs, which could reach as high as 25%, will hurt the US auto industry badly.

Farley explained that the tariffs are already causing chaos and increasing costs for automakers, even though they haven’t been enforced yet. He warned that if they continue, the effects could be severe, affecting both manufacturers and customers.

During an investment conference, Farley highlighted how President Trump’s push to make the US auto industry stronger and bring more production here had been a major goal. But instead of benefiting from this strategy, Farley said the industry is now facing extra financial strain and uncertainty.

Ford isn’t as exposed as rivals like GM or Stellantis, but it will still feel the impact. Supply chain disruptions could hurt the company’s bottom line. On a recent earnings call, Farley mentioned that prolonged tariffs could wipe out billions in profits and hurt US jobs.

For now, Ford is trying to prepare by building up inventory in the US to help minimize the damage. But the looming tariffs remain a major worry.

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Mark is the kind of person who gets way too excited about new software updates and can’t resist taking apart gadgets—just to see if they can put them back together. With years of experience in tech journalism and a love for all things digital, Mark writes about the stories behind the screens, from game-changing innovations to the everyday tech that keeps life running smoothly. Outside of work, they’re the go-to “tech support” for friends and family, whether it’s fixing a printer that won’t cooperate or explaining why Grandma’s laptop keeps showing pop-ups. When Mark isn’t glued to their screen, they’re probably building their dream PC, rewatching sci-fi movies for the hundredth time, or testing a gadget that promises to “change everything.” Spoiler: they’ll let you know if it actually does.