Ford Says Tariffs Are A "Bonanza For Import Competitors"

Ford boss wonders why there aren't tariffs on Imported vehicles from rival manufacturers.

Ford CEO Jim Farley isn’t holding back on his concerns about the U.S. government’s latest round of tariffs, arguing that they unfairly penalize some automakers while giving others a competitive advantage. With Ford producing several key models outside the U.S., including the Bronco Sport, Maverick, and Mustang Mach-E in Mexico and the Lincoln Nautilus in China, the company stands to take a direct hit from the proposed 25% tariffs on Mexican and Canadian imports, as well as the 10% duties on Chinese-built vehicles.

During Ford’s fourth-quarter earnings call, Farley pointed out that while these tariffs impact Ford’s supply chain, other global automakers are benefiting from a loophole.

"What doesn't make sense to me is why are we having this conversation while Hyundai Kia is importing 600,000 units into the U.S. with no incremental tariffs," Farley said during the call.

"Why is Toyota able to import 0.5 million vehicles in the U.S. with no incremental tariffs? I mean, there are millions of vehicles coming into our country that are not being applied to these. So if we're going to have a tariff policy that lasts for a month or it's going to be years, it better be comprehensive for our industry. We can't just cherry-pick one place or the other because this is a bonanza for our import competitors."

Ford isn’t the only domestic automaker navigating this uneven playing field. General Motors, for example, imports the Buick Encore GX and Envista from South Korea without additional duties. Japanese-built vehicles are currently subject to a 2.5% tariff, it’s a far cry from the steeper duties Ford and other manufacturers could face.

The timing of these tariffs comes as Ford continues to manage its own financial challenges, including struggles in its EV division and an overall decline in stock value. With models like the Mustang GTD set to be assembled by Multimatic in Canada, along with two engine plants and the currently idle Oakville Assembly Plant, Ford is bracing for potential cost increases that could impact its profitability.

Farley also took the opportunity to address the threat of Chinese vehicles entering the American market. Acknowledging that while yes, Chinese companies receive an inordinate amount of support from the Chinese government, there are also some very real issues surrounding privacy that need to be addressed.

"We have to have the right policies around privacy, the right policies around national security because these are not the cars of old. They're data collection machines." Of course, it's not enough to simply have the support of the United States government, the product has to stand on its own four wheels and speak to what the consumer wants.

"So I guess, what I'm saying is we need to work with our government partners to make it a level playing field as much as possible. But at the end of the day, it's management's responsibility to beat the [Xiaomi]SU7 straight up in a street fight."

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