In an attempt to capture the administration’s focus, Ford Motor Company CEO Jim Farley appeared on Fox News to express a positive stance towards the tariffs on imported vehicles that President Donald Trump had recently enforced, even though Farley previously stated back in February that such tariffs might " create a gap in the auto industry .
Farley made an appearance on " The Ingraham Angle on Laura Ingraham’s show – which Trump frequently watches – to address a set of inquiries regarding Ford's response to tariffs, following the company's announcement of an initiative providing employees' discounts on most of their vehicles for American purchasers.
During an extensive interview, Farley stated that Ford sees the tariffs as an opportunity to “secure more business.” He added that focusing the tariffs on ensuring fair trade with international competitors would be beneficial. However, he expressed reservations about imposing duties on components. Ford incorporates numerous imported parts into vehicles manufactured within the U.S. Farley suggested that should the Trump administration waive taxes on these parts, the automotive sector could find itself better positioned to manage increased tariff expenses without compromising car affordability or hindering employment expansion.
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"This truly hinges on collaborating closely with our leaders in D.C. regarding specifics since those particulars hold significant importance,” Farley explained to Fox News. “Our domestically produced vehicles consist of numerous components, and maintaining their affordability remains a key objective.”
He mentioned that certain components, like wiring harnesses—the bundles of wires essential for operating the vehicle’s electrical systems—are specialized items. These often have to be brought in from abroad. However, Farley stated, “As we collaborate with the administration, we remain hopeful that we can strike an appropriate equilibrium between cost-effectiveness and a robust sector capable of generating new employment opportunities within the next few months and years.”
A spokesperson for Ford, Mark Truby, informed the Free Press that Farley participated in the show primarily to communicate that Ford boasts the biggest manufacturing presence within the U.S., and they plan to navigate through these tariff challenges; however, specifics remain crucial. Additionally, Truby mentioned that Andrew Frick, who heads both Ford Blue and Model E—the divisions responsible for gas, hybrid, and electric vehicle operations—conducted several media engagements on Friday with outlets such as CNN, Fox Business, and AP TV.
As the leading automotive manufacturer in America, it's crucial for Ford to voice our stance on tariffs and trade, as well as the intricacies of the global supply chain," Truby stated. "These discussions further informed customers about our 'From America, For America' employee pricing benefit available to them.
Offering an equitable competitive environment
The previous week, Trump introduced tariffs—taxes levied on imports crossing national boundaries—on every vehicle brought into the country along with most automotive components. He claims these taxes will encourage increased manufacturing within the U.S., generate employment opportunities, and yield several billion dollars.
However, since the automakers and suppliers bear the cost of the tariff rather than the originating country, numerous automotive sector experts have cautioned that these duties will lead to increased vehicle prices as they attempt to compensate for the additional import taxes incurred when bringing in components or whole cars. In response, the stock market has shown signs of distress, causing shares of all three major Detroit-based automakers to decline significantly on Monday.
Each of the three major automakers based in Detroit manufactures vehicles in places like Mexico, Canada, and other locations, which they then bring into the U.S. for sales purposes. In reaction to the tariffs, General Motors has boosted manufacturing of large pickup trucks at their facility in Fort Wayne, Indiana.
Stellantis is halting manufacturing operations at certain of its assembly facilities In both Mexico and Canada, specifically mentioning the Windsor Assembly plant located in Ontario, operations have been halted. This interruption will result in approximately 900 employees being temporarily laid off across various locations in Michigan—including the Warren and Sterling stamping facilities—and in Indiana, at the Indiana and Kokomo transmission plants along with the Kokomo Casting facility.
Farley said the automaker builds more vehicles in the United States than any other manufacturer and it is taking a different approach with its employee pricing for everyone program that will run through June 2.
"I think this is a crucial time for Ford to set itself apart, giving us the chance to showcase the American automotive industry during a period when it’s getting significant attention in the media. It presents an excellent opportunity to attract more customers," Farley stated on Fox.
He stated, “We appreciate the president’s guidance and the opportunity to collaborate with this administration to engage in fair competition. These tariffs, particularly those imposed by China and other trade allies, will help level the playing field. This enables us to effectively contend within our domestic marketplace under equitable conditions.”
'The biggest battle' looms for car manufacturers
Farley stated that China leads as the top automobile exporting country globally, pointing out that over 20% of cars sold in Mexico originate from China. He mentioned that certain new tariffs would assist American car manufacturers maintain their domestic market share by reducing competitive pressure from abroad.
“Regardless of whether it’s non-tariff barriers or tax policies in those nations, we observe every just and unjust method our rivals operate on an international scale,” Farley stated. “These countries understand how crucial automobiles are for employment within their borders, and they will use every means possible to support these competitors. It’s about time for us in our nation to become more committed.”
Farley stated that U.S. car manufacturers and the Trump administration need to work together to “iron out” the specifics of tariff policies, adding, “I am quite optimistic that this collaboration will provide us with a greater opportunity for a fair competition—the most significant showdown in the automotive sector over the past four years.”
Ford continues to communicate with the White House.
Ford has mentioned that approximately 80% of the vehicles sold in the United States are manufactured domestically. However, the company imports numerous components for these vehicles from various foreign nations. Additionally, Ford produces certain engines in both Canada and Mexico specifically for installation in cars assembled within the U.S. These imported parts might likely face a potential tariff of up to 25%, which could significantly increase Ford’s expenses.
Farley mentioned that the car company is tackling this problem currently. The Free Press has indicated that executives from GM and Ford have been discussing with the Trump administration. since early this year.
A source close to Ford has disclosed that the company is still engaged in talks with the government regarding the potential tariffs on automotive components. The individual requested anonymity as they aren’t officially permitted to disclose this information. Currently, certain car parts that comply with regulations outlined in the United States-Mexico-Canada Agreement—a replacement for the former North American Free Trade Agreement introduced in 2018 under President Donald Trump’s first term—are exempt from these duties.
The specifics remain hazy regarding which particular parts and components currently manufactured outside the U.S. could be granted permanent exemption from these tariffs. According to President Trump’s proclamation, his proposed 25% tariffs on car parts will come into play not later than May 3rd.
Jamie L. LaReau serves as the senior automotive journalist covering Ford Motor Company for the Detroit Free Press. You can reach Jamie at jlareau@freepress.com . Keep up with her on Twitter @ jlareauan To register for our service, please follow these steps: autos newsletter . Become a subscriber .
The article initially appeared in the Detroit Free Press. The CEO of Ford, Jim Farley, appears on Fox News to capture Trump's notice regarding the effects of tariffs.