Ford CEO Jim Farley addresses tariff concerns on Fox News to gain Trump's attention
- Ford CEO Jim Farley told Fox tariffs offer Ford a chance to win some sales.
- Farley said if tariffs level the playing field in the States against foreign rivals, that's a good thing.
- Farley told Fox if imported parts are exempted from many tariffs, vehicles could remain affordable and jobs would continue to be added.
Ford Motor Co. CEO Jim Farley looked to get the attention of the White House by going on Fox News and taking an optimistic view of tariffs that President Donald Trump imposed on imported autos − despite comments Farley made in February warning that tariffs could "blow a hole" in the auto industry.
Farley appeared April 4 on "The Ingraham Angle" with host Laura Ingraham − a show Trump is known to watch − to answer a series of questions about Ford's reaction to tariffs a day after the automaker rolled out a campaign offering U.S. car buyers employee pricing on most of its vehicles.
In the wide-ranging interview, Farley said Ford is viewing the tariffs as a chance to "gain some business." He also said that if the focus of tariffs is on fair trade with foreign rivals, that's good. But he indicated concerns around tariffs on parts. Ford uses thousands of imported parts in the cars it builds in the United States. Farley implied that if the Trump administration exempts imported parts, the auto industry will have a better shot at striking a balance between paying the higher costs of tariffs while maintaining vehicle affordability and job growth.
“This is really the essential point of working closely with our leaders in D.C. on the details because the details matter greatly," Farley told Fox. "We have thousands of parts in our American-made vehicles, and we want to keep them as affordable as possible."
He said some of the parts, such as wiring looms − the connections of wires that help operate the car's electric systems − are specialty parts. Often, those can only be imported. But, Farley said, "as we work through this with the administration, we’re optimistic we can find the right balance between affordability and a strong industry where we can add jobs to the industry in the coming months and years."
Ford spokesman Mark Truby told the Free Press that Farley went on the show to convey that Ford has the largest U.S. manufacturing footprint and it will work through the tariffs, but the details matter. Truby noted that Andrew Frick, president of Ford Blue and Model e − the company's business units for gasoline, hybrid and electric vehicles − did interviews April 4 with CNN, Fox Business and AP TV.
“As America’s No. 1 auto producer, it’s important for Ford to share our perspective on tariffs and trade, and the realities of the global supply chain," Truby said. "The interviews also helped make customers aware of our ‘From America, For America’ employee pricing offer to customers.”
Providing a level playing field
Trump imposed tariffs − a tax an importer pays when goods cross borders − on all imported vehicles and most auto parts. Trump has said the tariffs will drive more manufacturing to the United States, create jobs and bring in billions of dollars.
But because the automakers and suppliers pay the tax, not the country where the goods originate, many auto industry analysts have warned that the tariffs will force car prices up to offset the added import tax paid either to bring in parts or to import vehicles. The stock market has reacted negatively, with stocks of each Detroit automaker taking hits.
All three Detroit carmakers make vehicles in Mexico, Canada and elsewhere that they import into the United States for sale. General Motors has responded to the tariffs by increasing production of full-size pickups at its plant in Fort Wayne, Indiana.
Stellantis is pausing production at some of its assembly plants in Mexico and Canada, including Windsor Assembly in Ontario. The pause will lead to temporary layoffs of about 900 people total at the Warren and Sterling stamping plants in Michigan as well as the Indiana and Kokomo transmission plants and Kokomo Casting in Indiana.
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.
"We believe this is a moment for Ford to differentiate itself, for us to really highlight the American car industry in a moment when it’s being discussed in the media. And it’s an opportunity to gain some business," Farley said on Fox.
He added, "We’re grateful for the president’s leadership and the chance to work with this administration to compete on a fair playing field, which these tariffs, especially those coming from China and other trading partners, (will) really put us on an equal footing so we can compete in our home market in a fair way."
'Biggest fight' ahead for automakers
Farley said China is the largest exporter of automobiles in the world, noting that more than 20% of the vehicles sold in Mexico are built in China. He said some of the new tariffs will help American automakers hold on to market share in the United States by limiting foreign competition.
"Whether it’s nontariff barriers or tax policies in those countries, we see all the fair and unfair ways our competition plays globally," Farley said. "They know how important auto is to jobs in their country, and they’re going to do everything they can to help those competitors, and it’s high time for us in our country to get serious."
Farley said the U.S. automakers and the Trump administration must collaborate to "work out the details" on tariff policies, "But I’m very encouraged that we will have a better chance for a fair and square fight, the biggest fight we’ve seen in the auto industry in four years.”
Ford still talking to the White House
Ford has said about 80% of the vehicles it sells in the United States it also builds here. But it does get thousands of parts for those vehicles from other countries. It also builds some engines in Canada and Mexico to plug into vehicles it builds in the United States. Presumably all of those parts could be subject to 25% tariffs, causing a dramatic surge in Ford's costs.
Farley said the automaker is addressing that concern now. As the Free Press has reported, leaders at GM and Ford have been in conversations with the Trump administration since early this year.
According to a source familiar with Ford, the automaker is continuing to have conversations with the administration on how auto parts will be tariffed. This person asked to not be publicly named because they are not authorized to share that information. As of now, some auto parts that meet terms in the United States-Mexico-Canada Agreement, a successor to the North American Free Trade Agreement and signed during the first Trump administration in 2018, are exempt from tariffs.
What remains unclear is what specific parts and components now built outside of the United States might end up being permanently exempt from tariffs. Trump's 25% tariffs on automobile parts are due to take effect no later than May 3, according to the president's proclamation.
Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.