Ford CEO Jim Farley has thus far supported universal tariffs on imported automobiles while also stating that the company is prepared to deal with whatever policy changes U.S. President Donald Trump has in store. However, at the same time, the executive has also made it clear that a planned 25 percent tariff on imports from other countries stands to impact the automaker in a major way, regardless. Now, a new letter from Farley to Ford employees reveals that he’s prepared for what he believes will be “significant” impacts to the business.
“While Ford supports the president’s vision of building a stronger auto industry and manufacturing base in the United States, the situation is dynamic and the impacts of the tariffs are likely to be significant across our industry – affecting automakers, suppliers, dealers and customers,” Farley said in the letter, according to Automotive News. “It’s also important to understand that Ford is in a unique position because we have the largest American manufacturing footprint of any automaker. We have made a conscious choice to be the most American automaker even as others moved production offshore, and that’s something we will promote with pride.”
“To be clear, this does not mean Ford is immune to the impact of tariffs, which could be meaningful. However, our unique American manufacturing footprint is a positive competitively in this otherwise challenging environment. Just as we did during COVID, the chip shortage and other situations, Ford will work across the company, and closely with our dealers and suppliers, to protect our business in all global markets and take care of our valued customers. Please stay focused on delivering the highest-quality vehicles and experiences for our customers, eliminating waste from our operations and taking care of each other.”
Farley added that Ford is still evaluating the impacts of this new 25 percent tariff on its business, which is slated to go into effect on April 3rd, 2025, followed by another tariff on imported components that don’t comply with United States-Mexico-Canada Agreement no later than May 3rd. Some have speculated that automakers will raise prices as a result, but as Ford Authority reported last week, Trump recently warned Ford, General Motors, and Stellantis not to take that sort of action in response to the new tariff.
An option for light, dark, and in-between.
Picking right up where she left off.
Red and white: a simple, classic color combo.
One of the nicest examples we've come across lately.
Not clear why the safety feature was slashed.
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Seems Farley has no clue how Tariffs will impact Ford. This is like the 3rd time he's commented on it. So which is it? Significant? Insignificant? Minimal? Can't be all three.
Idiot Trump has no clue about tariffs. They are on, off, on, off, on...... he is a loser.
Farley is petrified, terrified, panic-stricken, and rightly so.
Since Trump told both Jim and Mary not to even think about raising prices, the obvious conclusion is that he'll send boatloads of cash to either or both should they get into trouble. Like he's ordered a new limo, that makes as much sense under his DOGE mandate as rescuing Ford and/or GM. And it's impossible to predict what his mood swing might be if that happens. 3rd term nonsense over the weekend. He won't last this term if the Great Recession 2.0 happens.
Ridiculous. Auto makers should have a few years to adapt. This is a huge tax on Americans. Have fun paying 25% more for auto purchases.
Paying 25% more for auto purchases? Were already paying 25% more for the low-quality overpriced vehicles from Ford and GM with parts made in China.
Elections have consequences. Electing a man-child has negative consequences.
Forcing American company's to produce there products here in the US isn't a negative consequence.
It is because all this was done with practically no great advance notice. Manufacturers can't just snap their fingers and have a few more major manufacturing facilities and trained staff in a few weeks. And if they're forced to absorb the tariff, they won't necessarily have the amount of working capital to build and train.
Electing a dementia patient sure had consequences for 4 years didn't it.
I've had a Maverick on order since the end of January, they haven't even scheduled the 'build date' in Mexico yet.
I have no idea if I have an order and at what price. I will not pay 25% more than we originally agreed. If they called me with one off the lot I'd take it today.
Stop paying CEOs 24 million a year.
Please bring the Ford Everest to the US. It is a great vehicle. Thx.?
I agree more time is needed .Add 5% tariff 1st year then 10% second year and so on.They cant start magically making cars here overnight.That said I saw where even most Ford cars built in the USA only about 30% is American made .Ford needs to do better.
Donald J. Trump knows that this is the way to rebuild the Manufacturing Base in America ! Now, Jim Farley , when are you going to build a larger base of Vehicles ? Ford used to build Wagons, hardtops , Sport cars , ! Just look at the Base of Vehicles in the Ford Catalog for 1964 ! Wow , what a selection from A to Z ! Ford doesn't build anything like Toyota ,or Kia or Hundai ! Ford just doesn't make enough vehicles to lure the Buying Public to stop in to a Ford Dealer !
Donald J Trump is an idiot.
David, you're the idiot. The US currently has a $36,000,000,000,000 debt. OBVIOUSLY, what's been done regarding foreign trade has not worked. And you're worried about a more expensive new car? Buy a used one if you can't afford to support the US.