Ford Motor Co.'s CEO Jim Farley aimed to capture the White House’s attention by appearing on Fox News and presenting a positive stance on tariffs supported by President Trump. Donald Trump applied to imported automobiles − even though Farley cautioned in February that tariffs might " create a gap in the auto industry .
Farley made an appearance on " The Ingraham Angle with host Laura Ingraham — a program frequently watched by Trump — to address a set of queries regarding Ford’s response to tariffs, following the company's announcement of an initiative providing American car purchasers with employee discounts on most models.
During an extensive interview, Farley stated that Ford sees the tariffs as an opportunity to “increase their market share.” Additionally, he mentioned that focusing the tariffs on ensuring fair competition with overseas manufacturers would be beneficial. However, he expressed reservations about imposing taxes on components. Ford incorporates numerous imported parts into vehicles assembled within the U.S. Farley suggested that should the Trump administration waive duties on these parts, the automotive sector could more effectively manage the increased expenses associated with tariffs while still keeping car prices affordable and fostering employment opportunities.
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This truly hinges on collaborating closely with our leaders in D.C. regarding specifics since those particulars are crucially important," Farley stated to Fox News. "Our domestically produced cars consist of numerous components, and maintaining their affordability is something we aim for.
He mentioned that certain components, like wiring looms — which are bundles of wires essential for operating the vehicle’s electrical systems — are specialized items. These often have to be brought in from outside. However, Farley stated, “As we collaborate with the administration on this issue, we remain hopeful that we can achieve an appropriate equilibrium between cost-effectiveness and a robust sector capable of generating new employment opportunities over the next several months and years.”
Mark Truby, a spokesperson for Ford, informed the Free Press that Farley participated in the show to communicate that Ford possesses the biggest production presence within the U.S., and they intend to navigate through these tariff challenges; however, specific elements remain crucial. Additionally, Truby mentioned that Andrew Frick, who leads both Ford Blue and Model E —the divisions focused on gas, hybrid, and electric cars— conducted media engagements on April 4th with CNN, Fox Business, as well as AP TV.
As the leading automotive manufacturer in America, it's crucial for Ford to voice our stance on tariffs and trade, as well as the intricacies of the global supply chain,” Truby stated. “These discussions also served to inform consumers about our 'From America, For America' employee discount program available to customers.
Offering an equitable competitive environment
Trump imposed tariffs − a tax an importer pays when goods cross borders − on all imported vehicles and most auto parts. Trump has said the tariffs will drive more manufacturing to the United States, create jobs and bring in billions of dollars.
However, since the automakers and suppliers bear the burden of the tax rather than the originating country, numerous automotive sector experts have cautioned that these tariffs will lead to increased vehicle prices. This price hike aims to compensate for the additional import taxes levied when bringing in components or finished cars. Consequently, this situation has caused a downturn in the stock market, resulting in significant declines in the share values of all three major Detroit-based automobile manufacturers.
Each of the three major automakers based in Detroit manufactures vehicles in places like Mexico, Canada, and other locations, which they then bring into the U.S. for sale. In reaction to the tariffs, General Motors has boosted manufacturing of large pickup trucks at its facility in Fort Wayne, Indiana.
Stellantis is halting production at certain of its manufacturing facilities In both Mexico and Canada, specifically mentioning the Windsor Assembly plant located in Ontario, operations have been halted. This interruption will result in approximately 900 employees being temporarily laid off across various facilities. These include the Warren and Sterling stamping plants situated in Michigan, along with the Indiana-based Indiana Transmission Plant and Kokomo Transmission Plant, plus the Kokomo Casting facility also found within Indiana.
Farley mentioned that the company manufactures more vehicles in the U.S. than any other carmaker. They are adopting a distinct strategy with their employee pricing for all customers scheme, which will continue until June 2nd.
Farley stated on Fox that "This is a crucial time for Ford to set itself apart, allowing us to truly showcase the American automotive sector during a period when it's receiving significant media attention. It also presents an occasion to secure more business."
He stated, "We appreciate the president’s guidance and the opportunity to collaborate with this administration to engage fairly in competition. These tariffs, particularly those imposed by China and other trade allies, will help level the playing field, enabling us to effectively contest in our domestic market under just conditions."
'The biggest battle' looms for car manufacturers
Farley mentioned that China leads as the biggest exporter of cars globally, pointing out that over 20% of vehicles purchased in Mexico originate from China. He added that certain new tariffs aim to assist U.S. car manufacturers maintain their domestic market position by reducing competitive pressure from abroad.
“Regardless of whether it’s non-tariff barriers or tax policies in these nations, we observe every just and unjust method our rivals operate on an international scale,” Farley stated. “These countries understand how crucial automobiles are for employment within their borders, and they will go to great lengths to support those competitors. It’s about time for us in our nation to take this matter seriously.”
Farley stated that U.S. car manufacturers and the Trump administration should join forces to "hammer out the specifics" regarding tariffs. He added, "I am quite optimistic that this collaboration will provide us with a greater opportunity for a fair competition—the most significant showdown our automotive sector has witnessed in the last four years."
Ford continues to communicate with the White House.
Ford has mentioned that approximately 80% of the vehicles sold in the United States are manufactured domestically. However, the company still imports numerous components from various nations. Additionally, Ford produces certain engines in both Canada and Mexico specifically for installation in U.S.-built vehicles. These imported parts might face potential 25% tariffs, which would likely result in a significant increase in Ford’s expenses.
Farley mentioned that the company is tackling this issue currently. The Free Press has indicated that executives from GM and Ford have been discussing matters with the Trump administration. since early this year.
A source close to Ford has disclosed that the company is still engaged in discussions with the government regarding the potential tariffs on automotive components. The individual requested anonymity as they do not have permission to disclose this information publicly. Currently, certain car parts that comply with the regulations outlined in the United States-Mexico-Canada Agreement—an agreement that replaced NAFTA and was enacted under President Donald Trump’s first term—are free from these duties.
It’s still uncertain which particular parts and components currently manufactured outside the U.S. will ultimately be granted an exemption from the tariffs. According to President Trump's announcement, the 25% tariffs on auto parts are scheduled to go into effect by no later than May 3rd.
Jamie L. LaReau serves as the senior automotive reporter covering Ford Motor Company for the Detroit Free Press. You can reach Jamie at jlareau@freepress.com . Follow her on X @ jlareauan . To register for our service autos newsletter . Become a subscriber .
The article initially appeared in the Detroit Free Press. Ford CEO Jim Farley tackles tariff worries on Fox News to capture Trump's notice.