Ford CEO decries cost and chaos of Trump tariffs
By Nora Eckert
DETROIT (Reuters) - Ford Motor (NYSE: F ) CEO Jim Farley said U.S. President Donald Trump's proposed and implemented tariffs have added "a lot of cost and a lot of chaos," although Farley said he believes the president aims to strengthen the American auto industry overall.
Businesses around the nation have warned of fallout from the tariffs, with many manufacturing-heavy companies finding it difficult to plan next steps or determine if Trump will follow through on signaled policy moves.
Ford is considering areas in which it can build up inventory to prepare for potential 25% tariffs on imports from Mexico and Canada, executives said at an analyst conference Tuesday. Trump planned to initiate these duties earlier this month, before delaying them until March.
The automaker is not significantly exposed to increased tariffs on steel and aluminum, which Trump raised Monday. Ford gets most of these materials from the U.S., executives said, although it expects to absorb some cost from suppliers who are more affected.
"President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation to the U.S., and if this administration can achieve that, it would be one of the most signature accomplishments. So far, what we're seeing is a lot of cost and a lot of chaos," Farley said.
The Dearborn, Michigan company is less exposed to fallout from threatened tariffs on Mexico and Canada than its crosstown rival General Motors (NYSE: GM ) or Jeep-maker Stellantis (NYSE: STLA ), analysts said. More of Ford's manufacturing base is in the U.S., and the vehicles it imports from outside countries are less profit-rich than those products its competitors import.
Ford shares were down 0.4% in morning trading Tuesday.