Ford CEO Jim Farley has expressed concerns over President Donald Trump's threatened tariffs on imports from Mexico, Canada, and China, questioning the selective approach and warning of a devastating impact on the US auto industry.

During a conference call on Wednesday, Farley pointed out the inconsistency in Trump's tariff policy, highlighting that Hyundai-Kia and Toyota are able to import hundreds of thousands of vehicles into the US without facing incremental tariffs. "Why are we having this conversation while Hyundai-Kia is importing 600,000 units in the U.S. with no incremental tariff? And why is Toyota able to import a half a million vehicles in the U.S. with no incremental tariffs?" Farley asked.

Farley's comments were not a call for more tariffs, but rather a critique of the current policy, which he believes would negatively affect only some global automakers that import parts or vehicles from North America, while companies from Korea, Japan, and Germany would be able to continue importing vehicles to the US without a similar penalty. Ford spokesperson Ian Thibodeau clarified that Farley's intention was to emphasize the need for a comprehensive tariff policy that would not create an uneven playing field.

The timing of Farley's comments is significant, as Ford is currently facing challenges in its electric vehicle (EV) program. The company announced a loss of over $5 billion on its EV program in 2024, and its electric pickup truck, the F-150 Lightning, was outsold by the Cybertruck last year. Ford is developing a low-cost EV platform, but it's still years away from production. In the meantime, the company is looking to expand its offerings to include "extended range" hybrid powertrains, which would appeal to buyers who are hesitant to switch to fully electric vehicles.

Farley warned that the proposed 25% tariffs on imports from Mexico and Canada would have severe consequences for the auto industry, including the loss of "billions of dollars" in profits, an "adverse effect on U.S. jobs," and "higher prices" for customers. If implemented and sustained, Farley believes the tariffs would have a "devastating impact" on the industry.

Despite his concerns, Farley expressed confidence in the Trump administration's commitment to strengthening the US auto industry, citing its importance to jobs, the economy, national security, and communities across the country. However, the uncertainty surrounding the tariff policy and its potential impact on the industry remains a significant concern for Ford and other automakers.

The ongoing trade tensions and the auto industry's struggles to adapt to changing consumer preferences and technological advancements make Farley's comments a timely reminder of the complexities and challenges facing the sector. As the industry navigates these uncertain times, Ford's CEO is urging policymakers to consider the broader implications of their decisions and strive for a more comprehensive and equitable approach to trade policy.