Ford CEO Praises Trump’s Tariff Changes

Introduction to the Automotive Tariff Situation

Ford Motor CEO Jim Farley speaks during a launch event for the 2025 Ford Expedition in Louisville, Kentucky, on April 30, 2025.
President Donald Trump’s reprieve for automotive parts tariffs is helpful, but more changes are still needed to assist automakers and grow the U.S. auto industry, Ford Motor CEO Jim Farley said Wednesday.

The New Tariff Actions

The new actions — which Trump signed into action via an executive order Tuesday — reimburse automakers for some U.S. parts and reduce the "stacking" of tariffs upon each other for the industry.
Tuesday’s changes came after pleas from the automotive industry for relief amid regulatory uncertainty around Trump’s tariffs, including 25% on imported vehicles into the U.S. and an upcoming 25% on automotive parts by May 3.

Response from Ford Motor CEO

"The changes this week on tariff plans will help ease impact on tariffs for automakers, suppliers and consumers, but … we need to continue to work closely with the administration on a comprehensive set of policies to support our shared vision of that healthy and growing auto industry, and we are not there yet," Farley said during a launch event for the 2025 Ford Expedition at the company’s Kentucky Truck Plant.

Importance of U.S. Policies

Farley said it’s "essential" for U.S. policies to encourage exports as well as reward companies, such as Ford, for their American production.
"So many of the vehicles we build here are exported around the globe. Shouldn’t we get credit for that?" Farley said. "Those are American jobs and we have to keep working on affordable parts to ensure that those supply chains promote domestic growth and affordable vehicles in our country."

Impact on the U.S. Auto Industry

Ford, which is the largest producer of vehicles in the U.S., says it is a net exporter of parts and vehicles based on total value of goods, and nearly a net exporter on a per vehicle basis. A net exporter means a company exports more than it imports.
Farley laid out a number of "what if" scenarios regarding the impact to the U.S. auto industry and America if competitors matched Ford’s manufacturing operations. He said such actions would mean an increase of 4 million vehicles per year, 15 new manufacturing plants and more than 500,000 new manufacturing jobs in the U.S.

Tariff Details

Tariffs of 25% on imported vehicles into the U.S. will continue, but the new measures aim to reduce the overall tariff level that had resulted from separate levies — such as an additional 25% tariffs on steel and aluminum — "stacking" on top of one another.
Under the order, additional 25% tariffs on auto parts that were set to start by May 3 will also still take effect, but vehicles that go through final assembly in the U.S. will be able to qualify for partial reimbursements on those levies for two years.

Conclusion

In conclusion, while the new tariff actions are a step in the right direction, more work needs to be done to support the growth of the U.S. auto industry. Ford Motor CEO Jim Farley emphasized the importance of U.S. policies that encourage exports and reward companies for their American production.

FAQs

Q: What are the new tariff actions signed by President Trump?
A: The new actions reimburse automakers for some U.S. parts and reduce the "stacking" of tariffs upon each other for the industry.
Q: What is the current tariff rate on imported vehicles into the U.S.?
A: The current tariff rate on imported vehicles into the U.S. is 25%.
Q: What is the impact of the new tariff actions on the U.S. auto industry?
A: The new tariff actions will help ease the impact of tariffs on automakers, suppliers, and consumers, but more work needs to be done to support the growth of the U.S. auto industry.
Q: What is Ford Motor’s position on U.S. policies?
A: Ford Motor CEO Jim Farley believes that U.S. policies should encourage exports and reward companies for their American production.
Q: What is the potential impact on the U.S. auto industry if competitors match Ford’s manufacturing operations?
A: If competitors match Ford’s manufacturing operations, it could mean an increase of 4 million vehicles per year, 15 new manufacturing plants, and more than 500,000 new manufacturing jobs in the U.S.