Business leaders from all corners of the country have expressed cautious optimism about President Trump’s tariff threats, but Ford CEO Jim Farley didn’t mince words when he said the duties could “blow a hole” in the country’s auto industry. Farley took his show on the road earlier this week, meeting with a handful of Senators and members of the House of Representatives, hoping to influence the move, which could drastically change how businesses of all types operate going forward.
After the meetings, Farley told reporters that he looks forward to “continuing the dialogue with the administration and lawmakers about how best to achieve this vision,” talking about the White House’s stated goal of building a thriving domestic auto industry.
Farley’s efforts came after Trump threatened 25 percent tariffs on Canada and Mexico, two of the U.S. auto industry’s most significant trading partners. The administration announced further tariffs on steel and metals imports and has said it would carry out reciprocal tariffs on countries that add duties on U.S. goods.
While the tariffs could remain threats, the effects are already being seen. Farley said, “What we’re seeing is a lot of cost, a lot of chaos. If you look at the tariffs, let’s be real honest, long term, a 25% tariff across the Mexico and Canada border will blow a hole in the U.S. industry that we’ve never seen.” Additionally, he noted that a move to cut or reduce federal EV tax credits could cause mass layoffs and the loss of EV-related investments made by automakers.
[Images: Ford]
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