Ford CEO says Trump policy uncertainty creating chaos
Farley said Ford buys most of those two metals from US firms, but that the company's suppliers have international sources.
Republican presidential candidate former US President Donald Trump delivers remarks during a campaign rally at the Reno-Sparks Convention Center on 17 December 2023 in Reno, Nevada. Picture: Getty Images/AFP
NEW YORK - The Trump administration's tariff threats and animosity towards electric vehicles are producing a "lot of cost and a lot of chaos" for Ford, the automaker's chief executive said Tuesday.
While Trump has spoken about the priority of strengthening manufacturing in the United States, the administration thus far has been the source of tremendous "policy uncertainty" with constantly evolving tariff plans and a lack of clarity on whether tax credits favouring EVs will be rolled back, he said.
Appearing at a financial conference, Jim Farley described Trump's initial plan to enact 25% tariffs on Mexico and Canada as a disaster for US companies that operate across the region, while providing an unfair advantage to European and Asian automakers that also import to the United States.
Trump last week suspended the tariffs for 30 days following concessions from Mexico and Canada. But they have not been removed as a possibility by the Trump administration, which yesterday announced plans to enact 25% tariffs on steel and aluminium.
Farley said Ford buys most of those two metals from US firms, but that the company's suppliers have international sources.
"So that price will come through, and there may be a speculative part of the market where prices come up because tariffs are even rumoured," Farley said.
"President Trump has talked a lot about making our US auto industry stronger, bringing more production here, more innovation," Farley said, adding that these would be "signature accomplishments."
But "so far what we're seeing is a lot of cost and a lot of chaos," he said.
Farley pointed to lingering questions about the Trump administration's intentions on the Biden administration's Inflation Reduction Act, which included tax incentives for consumer EV purchases and for the building of EV factories.
An executive order on Trump's first day signalled the potential elimination of tax credits favouring EVs.
Farley said Ford had already "sunk capital" in major investments in Ohio, Michigan, Kentucky and Tennessee.
"Many of those jobs will be at risk if the IRA is repealed or if big parts of it is repealed," Farley said.