Ford CEO Jim Farley met with U.S. lawmakers on Wednesday after warning that 25% tariffs on Mexico and Canada could severely impact the U.S. auto industry. He spoke with Senators Roger Marshall, Elissa Slotkin, Deb Fischer, and several House lawmakers.
Farley’s concerns follow President Donald Trump’s recent tariff hikes—25% on steel and aluminum imports and an additional 10% on Chinese goods. Trump also threatened a 25% tariff on imports from Canada and Mexico, pausing them until March 1 after border security concessions.
Democrats have seized on Farley’s comments, with Michigan’s Democratic Party and Senate Leader Chuck Schumer arguing that Trump’s tariffs could drive inflation and hurt the auto sector.
Farley stated Ford supports Trump’s goal of strengthening the U.S. auto industry but warned that a 25% tariff on Mexico and Canada would cause unprecedented damage. “A lot of cost, a lot of chaos,” he said at a Wolfe Research conference.
He also raised concerns over potential EV policy changes. Ford has heavily invested in battery and assembly plants in Ohio, Michigan, Kentucky, and Tennessee. Republican lawmakers introduced bills to rescind EV tax credits and impose a $1,000 tax on new EVs to fund road repairs.
Farley emphasized Ford’s commitment to working with lawmakers and the administration to find the best path forward for the industry.
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