Ford CEO Says Trump Auto Tariff Reprieve Is Good But Not Enough As Industry Grapples with Fallout

Ford Motor Company CEO Jim Farley accepted President Donald Trump's executive order offered a slight backward from rising auto tariffs but warned that the US still lacks an interrelated industry policy to secure the future of domestic automaking.

While the move offers temporary relief to companies such as Ford, Farley said it falls into deep structural reforms needed to stabilize the sector, encourage exports, and maintain the ability of vehicles for American consumers.

The executive's command, signed on Tuesday, gives up to the partial payment of the upcoming 25% tariffs on imported automotic parts -but only for vehicles undergoing final US measuring assembly, which is set to remain for two years, are introduced in response to the maintenance requests from the automakers who have been alerted to the work and the maintenance of the automakers who have been alert to the work and the maintenance of the automakers who have warned the work and the maintenance of the work of the work and the highlights of the work and the full -the -pride of the work of the work and the full -pronunciation of the work of the work and the full -pronunciation of the work of the work and the full -pronunciation of the work and the maintenance of the work of the work and the full -the -pride of the work of the work and the highlights of all the automakers who have warned the work and pride of the all -hauling Supply chain. These new tariffs, which are effective in May 3, are at the top of Trump's earlier 25% tariffs on imported vehicles and levies in materials such as steel and aluminum, a layered approach described by industry players as “tariffs stacked.”

Speaking of the launch of the company's 2025 Ford Expedition at the company's Kentucky Truck Plant, Farley said the tariff change would help ease short -term pressures, but warned that it would not cost a whole solution.

“This week's changes to tariff plans will help ease the impact for automakers, suppliers and consumers, but … we need to continue working closely with the administration in a comprehensive set of policies to support our shared views on the healthy and growing auto industry, and we have not yet,” Farley said.

The Ford leader urged policy manufacturers to adopt a approach seeking forward to reward companies for manufacture and export from US land.

“So many of the vehicles we are building here are exported worldwide. Shouldn't we get credit for that?” he said. “Those are American jobs and we need to continue to work in the reach of parts to ensure that supply chains promote domestic and affordable vehicles in our country.”

The impact of the sector

While Ford appears to be carefully optimistic to navigate the impact of the tariff, thanks to the part in the wide footsteps of US manufacturing, the wider auto industry is emerging from uncertainty. Some foreign automakers have begun to stop exporting in the United States, while others are urgently re -evaluated their supply chains and pricing models.

Many auto companies, including Audi, Jaguar Land Rover, and Mitsubishi, have placed a temporary freeze on US exports until the full impact of the new tariff regime is understood.

Others are exploring if increasing localization of final assembly operations may allow them to be qualified for tariff payments under the new condemnation, but they take time and capital.

This disturbance has set alarm bells throughout the sector, especially for smaller portions of suppliers that operate on razor-thin margins. Industry associations are warning that cascading costs can promote disappearances, delays in new vehicle -controlling, and an investment retreat such as automakers are moving to electric vehicles and advanced technologies.

Repercussions for consumers and jobs

The stakes are equally high for American buyers. Multiple industry analysts say that combined tariffs, if not offset, may result in price increases of $ 1,000 to $ 2,500 per vehicle, depending on the model and complexity of the imported ingredients. That can push many entry-level vehicles that do not reach consumers in the middle-class, especially at the time of high interest rates and inflationary pressure.

At the national level, Farley warned that US dangers were losing a historical opportunity to restore its global dominance in auto -making. He floated a scenario where all foreign companies match Ford's domestic output, saying it can yield 4 million more vehicles a year, 15 new manufacturing plants, and over 500,000 new jobs.

“Imagine if companies that imported all vehicles in the US have treated American manufacturing such as Ford,” Farley said -while noticed that Ford itself was still importing a portion of its parts and vehicles from Mexico, Canada, and China.

Trump's tariffs were intended to push manufacturers to “build Americans”, but many criticized the move, focusing that the blunt-force approach had no nuance and coordination.

The tariff is a provocative dispute between the Trump administration and the auto industry, which warns that unpredictable tariff policy is disturbing long -term investment decisions. Trump has not signed to withdraw the broader 25% vehicle import tariffs, and on Wednesday he re -defends the new rotation of the tariffs of parts as needed to prevent outsource and protects American jobs.

However, political optics are moving as the consequences of the trade war are more visible. As the year 2025 approaches and consumer prices are still high, automakers are preparing for more chaos.

Farley indicated that the policy should reward the type of manufacturing and export made in the US, and not only can be about protection but about growth.

On May 3 fast approach, industry leaders launch the administration to re -consider or delay the entire implementation of new tariffs or expand the exceptions and credits for domestic manufacture. Some experts believe that if the pushback is growing, the administration can visit its approach again.