Ford CEO Jim Farley has voiced concerns over the impact of the Trump administration’s trade policies and stance on electric vehicles (EVs), describing them as a source of increased costs and instability for the automaker.
Speaking at a financial conference, Farley highlighted the uncertainty surrounding tariffs and tax incentives for EVs. He criticized Trump’s initial plan to impose 25 percent tariffs on Mexico and Canada, calling it a major setback for U.S. companies operating in the region while giving European and Asian automakers a competitive edge.
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Although the administration recently paused these tariffs for 30 days following negotiations with Mexico and Canada, plans to impose 25 percent duties on steel and aluminum remain on the table. Farley noted that while Ford sources most of its metals from U.S. suppliers, international pricing fluctuations could still affect costs.
“President Trump has emphasized strengthening U.S. auto manufacturing, increasing production, and driving innovation,” Farley said. “However, what we are experiencing so far is rising costs and market instability.”
He also raised concerns about the future of the Inflation Reduction Act (IRA), which provides tax incentives for EV production and consumer purchases. An executive order from Trump’s administration has signaled a possible rollback of these benefits.
Ford has already invested heavily in EV production, with significant projects in Ohio, Michigan, Kentucky, and Tennessee. Farley warned that if key provisions of the IRA are revoked, many of these jobs could be at risk.
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