Trump creates uncertainty and chaos in the automotive industry, says Ford boss
U.S. President Donald Trump's tariff threats and animosity toward electric vehicles are causing “a lot of costs and a lot of chaos” for Ford, the automaker's boss told a financial conference on Tuesday.
The Trump administration, while claiming to have reindustrializing the US as a priority, has so far instead been a source of significant “policy uncertainty”, said Jim Farley, referring to successive jolts over tariffs and a lack of clarity over support to boost electric vehicle sales.
According to Mr. Farley, the President's plan to apply 25% tariffs on imports from Mexico and Canada represents a disaster for American companies operating in these countries, while creating an imbalance in favor of Asian and European manufacturers who also import into the United States.The US President suspended implementation of the tariffs for 30 days, after Canada and Mexico quickly made concessions. But they can be reactivated at any time.
The US President suspended implementation of the tariffs for 30 days, after Canada and Mexico quickly made concessions. But they can be reactivated at any time.
On Monday, the U.S. administration announced proposed tariffs of 25% on steel and aluminum.
Mr. Farley pointed out that Ford's suppliers for these two metals are mainly American companies, but the Dearborn, Michigan-based manufacturer also buys from foreign vendors.
“So the price is going to be affected, and there could be speculation on the market with prices rising simply because there are rumors” of tariffs being introduced, Farley noted.
“President Trump has talked a lot about making the American auto industry stronger, producing more here, innovating more,” he continued, considering that these would be ‘landmark accomplishments’.
But, “so far, all we're seeing is a lot of costs and a lot of chaos,” Farley lamented.
In the first hours after his inauguration, Trump signed an executive order cutting off federal funding for the installation of electric vehicle charging stations, which could be followed by other measures to erase the Inflation Reduction Act (IRA), a flagship law of his predecessor Joe Biden.
This law provides for financial incentives, tax credits and other benefits for the purchase of electric vehicles and the construction of plants for the electric transition in the automotive industry.
Mr. Farley recalled that Ford had already “poured capital” into major investments in Ohio, Michigan, Kentucky and Tennessee.
“Many of these jobs will be at risk if the IRA is cancelled or whole sections are revoked,” he warned.
