Ford CEO Warns Tariff Uncertainty, EV Policy Shifts Threaten Jobs

Ford CEO Cites Tariff Uncertainty and EV Policy Shifts as Challenges

Ford's chief executive, Jim Farley, highlighted significant disruptions caused by the Trump administration's tariff policies and stance on electric vehicles (EVs), warning of potential job losses if current incentives are withdrawn.

At a recent financial conference, Farley criticized the administration for creating substantial policy uncertainty through fluctuating tariff measures and ambiguous commitments regarding EV tax credits. He emphasized that this unpredictability hinders Ford's operational stability.

Farley described the Trump administration's initial proposal to impose 25% tariffs on imports from Mexico and Canada as detrimental to U.S. businesses operating regionally. He argued that such tariffs would unfairly benefit European and Asian automakers who also bring vehicles into the United States.

In response to negotiations, Trump paused these tariffs for 30 days after Mexico and Canada made concessions. However, the administration has not ruled out reintroducing tariffs and has also declared intentions to enact 25% tariffs on steel and aluminum.

While Ford sources most of these metals from American suppliers, Farley noted that the company's suppliers have international origins. He expressed concerns that the anticipated tariffs could drive up costs, especially if market speculation about tariffs intensifies.

Farley acknowledged President Trump's rhetoric about bolstering the U.S. auto industry through increased domestic production and innovation, labeling these initiatives as potential "signature accomplishments." However, he contrasted these statements with the current reality, stating, "so far, what we're seeing is a lot of costs and chaos."

The CEO also raised issues regarding the Trump administration's position on the Biden-era Inflation Reduction Act (IRA), which provides tax incentives for EV purchases and the establishment of EV manufacturing facilities. An executive order issued on Trump's first day suggested a possible rollback of these EV tax credits.

Farley pointed out that Ford has already made substantial investments in states like Ohio, Michigan, Kentucky, and Tennessee. He cautioned that "many of those jobs will be at risk if the IRA is repealed or if big parts of it is repealed."