Ford's CEO, Jim Farley, expressed concerns this week that President Donald Trump's well-known tariff strategies are harming American automobile manufacturers, while allowing international competitors an unfair advantage.
The renowned car manufacturer produces 80 percent of its vehicles within the United States, yet Farley mentioned that it ends up paying higher tariffs compared to Japanese competitors who assemble cars there and then import them into the US.
Since Ford imports numerous small but crucial components — such as wiring, fasteners, and carpets — along with steel and aluminum, it faces a series of escalating tariffs, some reaching up to 50 percent.
In contrast, he mentioned that Japanese companies such as Toyota and Honda will be subject to a flat tariff of 12.5 to 15 percent on complete vehicles shipped from Japan. President Trump agreed to reduce the tariffs on this Asian nation in September.
"That's not a balanced confrontation," he remarked.in an interview on The Verge's Decoder podcast.
Since we generate the highest revenue in the US, we import the largest number of components. We face numerous cumulative tariffs.There are tariffs from China. We have steel and aluminum taxes that arenow over 50 percentThey all accumulate.
Farley's caution also highlights how tariffs, designed to strengthen American manufacturing, are already increasing the cost of car production.
Ford recorded an $800 million impact from tariffs during the second quarter of 2025, with Farley anticipating the total to rise to $2 billion by the end of the year.
If Ford relied solely on American suppliers for components, he stated the cost of America'sbest-selling car, the F-150, would raise $100 to $200 per month.
"Approximately 20 percent of our profits have disappeared due to these component tariffs," he stated, mentioning that he maintains regular contact with Trump's administration.
I am still highly hopeful that we will discover a resolution, although it comes at a significant cost.
And the impacts are expected to increase.
In a different interview on Tuesday, Farley likened tariffs to a baseball match, stating that the US economy is still "in the bottom of the first inning" regarding their impact.
"Those policies have excellent intentions," he stated.
'In the end, it will ultimately be a problem. It might appear asinflationit may appear in delays, but it will eventually appear.
Farley's remarks reflect the critique of the American Automotive Policy Council, whichmentioned the Daily Mail in Julythat Trump's trade deals are a 'poor arrangement for American manufacturing and American automobile workers.'
Matt Blunt, who leads the organization representing Detroit's major auto companies, stated, 'A lower tariff for Japanese imports that contain almost no U.S. components compared to the tariff applied to vehicles manufactured in North America.'
In comparison to other automobile manufacturers in Detroit, Ford is possibly in the most favorable situation.
The CEO of GM, Mary Barra, stated that her company isexpecting a $4 billion to $5 billion tariff billby the end of the year.
Stellantis — the corporation that oversees Chrysler, Jeep, and Dodge — haslaid off hundreds of employees this year and announced huge profit declines.
However, for Farley, Trump's defining policy is resulting in his company losing billions of dollars.
He is uncertain about the effect this will have on US consumers. However, his assumption is that it will lead to higher prices for all vehicles.
It's still too soon to know," he said to The Verge. "Typically, tariffs will increase the cost of producing goods domestically. Everything is expected to become more expensive.
On Thursday, the cost of the typical new car sold in the United States surpassed $50,000.
Independent experts inform the Daily Mail that they anticipate car prices will rise further with the increased availability of 2026 model vehicles at dealerships.
A Ford spokesperson chose not to respond to the Daily Mail's report.
Read more- In what ways are Trump's significant tariffs influencing the American auto industry and prompting Ford to modify the pricing of its well-known vehicle models?
- Is the billion-dollar tariff issue affecting Ford and GM about to cause a significant increase in the cost of your preferred vehicles?
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- How are car manufacturers responding to Trump's erratic tariffs while vehicle costs continue to rise?
- Is Ford utilizing its domestic manufacturing advantages to gain an edge over competitors dealing with massive tariff costs ranging from $4 billion to $5 billion?
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