Ford CEO Jim Farley: Trump’s Tariff Relief Helps, But More Needs to Be Done for U.S. Auto Industry.
LOUISVILLE, Ky. — Ford Motor Company’s CEO, Jim Farley, has praised President Donald Trump’s recent executive order that reduces certain automotive tariffs, describing it as a step in the right direction. However, Farley emphasized that while this move is helpful, it’s only part of the solution. To truly strengthen the American auto industry, he said, the country needs to develop a broader, more comprehensive set of policies.
On Tuesday, President Trump signed an executive order that offers partial relief to automakers by reimbursing them for some U.S. parts and reducing the cumulative effect of multiple tariffs, often referred to as the “stacking” of levies. This action came after months of requests from automotive leaders, who have been grappling with the uncertainty surrounding Trump’s tariffs, including the 25% tax on imported vehicles and a scheduled 25% tariff on auto parts slated to begin on May 3.
Speaking at the launch of the 2025 Ford Expedition at the company’s Kentucky Truck Plant, Farley addressed the impact of these policy adjustments. “The changes announced this week will certainly help ease the burden of tariffs for automakers, suppliers, and ultimately, consumers,” Farley said. “But we still have a long road ahead. We need to continue engaging with the administration to put in place a well-rounded policy framework that supports the vision we all share — a thriving and expanding auto industry in the United States.”
A major point of emphasis for Farley was the importance of U.S. policies that not only incentivize companies to manufacture domestically but also promote exports. According to Farley, rewarding companies that invest heavily in American manufacturing and export vehicles overseas is critical. “So many of the vehicles we produce here in the U.S. are shipped to markets all over the world. Shouldn’t we be recognized for that?” Farley asked. “These exports represent American jobs, and we must continue to find ways to make parts more affordable and ensure that our supply chains drive domestic growth and keep vehicles affordable for U.S. consumers.”
Ford is currently the largest vehicle manufacturer in the United States. The company says it is a net exporter when measured by the total value of goods, and it’s nearly a net exporter on a per-vehicle basis. Being a net exporter means Ford ships out more in goods and parts than it imports, which strengthens its contribution to the national economy.
Farley also presented several hypothetical scenarios highlighting how the U.S. economy and auto sector could benefit if other automakers mirrored Ford’s commitment to American manufacturing. He suggested that if foreign competitors matched Ford’s production levels in the U.S., it could result in a surge of four million additional vehicles manufactured each year, the establishment of 15 new manufacturing plants, and the creation of over 500,000 new manufacturing jobs across the country.
“Imagine the impact if companies that currently import the majority of their vehicles into the U.S. invested in American manufacturing the way Ford has,” Farley said. Despite his company’s focus on domestic production, Farley acknowledged that Ford still imports a significant amount of vehicles and parts from countries such as Mexico, Canada, and China.
Although the 25% tariff on imported vehicles remains in place, Trump’s new executive order is designed to mitigate the total burden of overlapping tariffs. Prior to this order, automakers were hit not only by the vehicle tariffs but also by additional levies, such as the 25% taxes on steel and aluminum, creating a heavy financial load. The new order allows for partial reimbursements over the next two years on the upcoming 25% tariff on auto parts, but only for vehicles that are completed with final assembly in the U.S.
While these measures offer some immediate relief, Farley believes they are just a starting point. His comments underscore the need for long-term policy planning that focuses not only on shielding automakers from excessive tariffs but also on encouraging the expansion of domestic manufacturing, boosting exports, and maintaining affordability for American consumers.
Overall, Farley’s message is clear: although recent policy adjustments are helpful, they fall short of what is required to truly revitalize the U.S. auto industry. He called on the government to continue working alongside automakers to build a more competitive, sustainable, and prosperous manufacturing landscape in the United States.