Ford CEO Jim Farley Says Tariffs Should Be More Comprehensive

Recently, newly-elected U.S. President Donald Trump announced that he would be implementing 25 percent tariffs on goods imported from Mexico and Canada, as well as 10 percent levies on China. Trump noted that he was looking for more support from Canada and Mexico, specifically, in terms of helping to stop the flow of illegal drugs and immigrants across both borders, and wound up delaying those tariffs after each announced plans to aid in those efforts – though China’s tariff has since taken effect. Ford CEO Jim Farley previously stated that the automaker was ready to deal with such policy shakeups, but he also wants tariffs to be a bit more comprehensive, it seems.

“What doesn’t make sense to me is why are we having this conversation while Hyundai Kia is importing 600,000 units into the U.S. with no incremental tariff, and why is Toyota able to import a half a million vehicles in the U.S. with no incremental tariffs?” Farley said on Ford’s Q4 2024 earnings call with investors, when asked about the potential impacts from these new tariffs.

“I mean, there are millions of vehicles coming into our country that are not being applied to these. So, if we’re going to have a tariff policy that lasts for a month or whatever it’s going to be, years, it better be comprehensive for our industry. We can’t just cherry pick one place or the other because this is a bonanza for our import competitors.”

Here, Farley is essentially saying that tariffs should be extended to places like South Korea and Japan as well, if they’re going to be implemented, in general. However, it’s worth noting that Trump’s main reasoning behind the aforementioned tariffs pertains to concerns over border security, and in the case of China, alleged unfair trade practices and the purported use of slave labor in some instances.