During Ford’s second-quarter earnings call, CEO Jim Farley emphasized the changing nature of the car industry due to President Trump’s trade war. The auto industry has been significantly impacted by tariffs, which initially imposed 25% tariffs on all imports. The Detroit Big Three – Ford, General Motors, and Stellantis – have a competitive edge over Japan, Korea, Europe, and the UK. However, the global integration of the automotive industry has led to tariffs impacting materials used, with GM and Stellantis importing more than half of their U.S. inventory. Ford, which makes 77% of its vehicles domestically, is expected to face $2 billion in tariff costs in 2025. Farley predicts that the tariffs will lead to regional businesses with trade tariff rates aligned for Europe, North America, and Asia. He also advocates for a renegotiation of the USMCA North American trade deal, which he believes will be long-term for the auto industry. The White House has given the auto industry a seat at the negotiating table, and Farley hopes the administration will continue to listen, even as deals undermine the stated goal of bringing manufacturing jobs back to the U.S.
The CEO of Ford is anticipating a significant industry shift following the recent tariff developments. Thuy 631
