Ford CEO warns that Trump’s prices cause “ chaos ”

The CEO of Ford, Jim Farley, says that the introduction of prices will add costs and will cause chaos to the American automotive industry

<!––>

–>

He is sure to say that the CEO of Ford, Jim Farley, is not a big fan of the series of prices of President Donald Trump. The head of Blue Oval previously warned that cutting China would be a misstep for the American automotive industry. Now, Farley’s concerns focus on the prices offered on Mexican and Canadian imports.

Talk to ReutersThe CEO says that he thinks that President Trump’s objective is to strengthen the American automotive industry, but clearly indicated that the current tariff trajectory had introduced “a lot of costs and a lot of chaos”.

Storage while you can

Ford is looking for means to create stocks before the introduction of the prices offered. Until now, the price of 25% of President Trump on the goods of Mexico and Canada has been delayed until March, giving the industry a little to breathe. But many car manufacturers we must now prepare for a reality where some of their cheapest models are faced with a larger import tax.

Read: Ford CEO slams Trump’s unjust prices that benefit foreign brands

In 2024, some 2.19 million vehicles sold in the United States were imported from Mexico, with 717,000 cars produced in Canada. Even if Ford is an American brand, some of its key models, such as Bronco Sport, Maverick and Mustang Mach-E, are built south of the border.

Ford’s rival, General Motors, is faced with similar problems, but has its own plans to mitigate the impact. Some of the GM house name models are also imported from other nations that have not been the target of the tariff crusade, such as the Buick still GX and envisaged South Korean manufacturing.

Cost and chaos

Ford says that the 25% price recently increased on steel and aluminum will not harm his business too much, because most of these metals come locally. However, the same cannot be said of some of the company’s suppliers, Ford expecting to absorb some of the increased costs that will result.

According to CNBCFord CEO Jim Farley, told journalists: “President Trump has a lot of ways of making our American industry stronger, bringing more production here, more innovation in the United States, and if this administration Can achieve this would be one of the most signature achievements. So far, what we see is a lot of costs and a lot of chaos. »»

It remains to be seen whether the new tariff structure for Mexican and Canadian goods will enter. Analysts predict that Ford is less exposed to external shocks than its main competitors in the form of GM and Stellantis. But with shares on Tuesday, it is clear that uncertainty causes headache for the blue oval.