Ford CEO Says Trump Auto Tariff Reprieve Is Good But Not Enough As Industry Grapples with Fallout

The CEO of Ford Motor Company, Jim Farley, hosted President Donald Trump’s executive decree offering a partial stay of the climbing of car prices, but warned that the United States has still not had a coherent industrial policy to guarantee the future of domestic automation.

While this decision offers temporary relief to companies like Ford, Farley said that it does not respond to the deep structural reforms necessary to stabilize the sector, encourage exports and maintain the affordability of vehicles for American consumers.

The decree, signed on Tuesday, allows the partial reimbursement of the 25% upcoming prices on imported automotive parts, but only for vehicles which are undergoing final assembly in the United States which measure, which remain in place for two years, has been introduced in response to supported pleadings of the supply chain which warned against severe disruptions of production and prices through the supply chain. These new prices, which take effect on May 3, come in addition to the price of 25% of Trump on imported vehicles and samples from materials such as steel and aluminum, a layer approach that industry players describe as a “tariff stack”.

Speaking during the launch of the Ford 2025 expedition to the company’s Kentucky truck factory, Farley said that the modification of prices would help relieve short -term pressures, but warned that it did not constitute a complete solution.

“The changes of this week on the price plans will help facilitate the impact of car manufacturers, suppliers and consumers, but … We must continue to work in close collaboration with the administration on a complete set of policies to support our common vision of this healthy and growing automotive industry, and we are not yet there,” said Farley.

The Ford chief urged decision -makers to adopt a prospective strategy that rewards companies to produce and export from American soil.

“So many vehicles that we build here are exported worldwide. Shouldn’t we get credit for this? ” He said. “These are American jobs and we must continue to work on affordable parts to ensure that these supply chains promote domestic growth and affordable vehicles in our country.”

The effect on the sector scale

While Ford seems prudently optimistic about navigation on pricing impact, thanks in part to its vast footprint of American manufacture, the larger automotive industry is in shock from uncertainty. Some foreign car manufacturers have already started to interrupt exports to the United States, while others urgently re-evaluate their supply chains and price models.

Several automotive companies, including Audi, Jaguar Land Rover and Mitsubishi, have placed a temporary freeze on exports linked to the United States until the complete impact of the new tariff regime is included.

Others explore if an increased location of the final assembly operations could allow them to qualify for reimbursements of the prices under the new order, but these changes take time and capital.

This upheaval has triggered alarm ringtones in the sector, especially for the smallest parts of parts that operate on thin razor margins. Industry associations warn that cascade costs could encourage layoffs, delays in deployment of new vehicles and a contraction in investment, just as car manufacturers pass to electric vehicles and advanced technologies.

Repercussions for consumers and jobs

The challenges are also high for American consumers. Several industry analysts have said that cumulative, if not compensated, prices could cause price increases from $ 1,000 to $ 2,500 per vehicle, depending on the model and complexity of imported components. This could push many entry -level vehicles out of range for middle class buyers, especially at a time of high interest rate and inflationary pressure.

At the national level, Farley warned that American risks missing a historic opportunity to reaffirm its world domination in automotive manufacturing. He launched a scenario in which all foreign companies corresponded to the interior production of Ford, saying that it could produce 4 million more vehicles per year, 15 new manufacturing factories and more than 500,000 new jobs.

“Imagine if companies that import all vehicles in the United States have dealt with American manufacturing like Ford,” said Farley-while noting that Ford himself still imports a part of his Mexico, Canada and China parts and vehicles.

Trump’s prices are intended to push manufacturers to “build American”, but many have criticized this decision, arguing that the approaching powerless force is lacking in nuance and coordination.

The price arouses friction between the Trump administration and the automotive industry, which has warned that an unpredictable tariff policy undermines long -term investment decisions. Trump has not reported no intention of withdrawing the larger prices of 25% import from vehicles, and on Wednesday, he defended the new parts of parts as necessary to prevent outsourcing and protect American jobs.

However, the political perspective changes while the consequences of the trade war become more visible. With the approach of the year of the 2025 model and the still high consumer prices, car manufacturers are preparing for more turbulence.

Farley said the policy should reward the type of manufacturing and export carried out in the United States and cannot be a question of protection but of growth.

With the rapid approach of May 3, industry leaders put pressure on the administration to reconsider or delay the complete implementation of new prices or extend the exemptions and credits for domestic production. Some experts believe that if the decline is strengthened, the administration can review its approach.