- Jim Farley, the CEO of Ford, said that Trump administration prices will harm the automotive industry.
- Trump’s prices on Mexico and Canada “would be devastating” for Ford, said Farley.
- Farley said that South Korean, Japanese and European car manufacturers would benefit from Trump prices.
Jim Farley, Ford CEO, said President Donald Trump’s latest prices on Mexico and Canada could take a serious blow to his business and the automotive industry.
Farley, who was speaking at a conference organized by Wolfe Research in New York on Tuesday, said if Trump had spoken of making American automotive industry stronger, “the president’s trade policies would hit Ford Ford.
“So far, what we see is a lot of costs and a lot of chaos,” Farley told the conference participants.
Trump announced on February 1 that it would impose 25% prices in Mexico and Canada. The prices, which were to take effect on February 4, were delayed by one month after the two countries accepted more strict border control measures.
“If you look at the prices, let’s be really honest, in the long term, a price of 25% through Mexico and the Canadian border would make a hole in the American industry that we have never seen,” said Farley on Tuesday.
“And this frankly gives a queue to South Korean and Japanese and European companies which bring 1.5 million to 2 million vehicles in the United States which would not be subject to these Mexican and Canadian prices,” added Farley . “It would be one of the biggest manifolds for these companies of all time.”
Farley added that Ford made sure that its finished vehicles and components comply with the US-Mexico-Canada agreement. But “having this kind of price size would be devastating,” said Farley.
The representatives of Ford and the White House did not respond to requests for comments from Business Insider.
This is not the first time that Farley has commented on Trump’s prices on Mexico and Canada. Ford, as well as other car manufacturers such as General Motors and Toyota, donated $ 1 million to the Trump inaugural fund.
Farley told investors during a profit call on February 5 that “there was no doubt” the prices would have a “huge impact” on the automotive industry and would cause higher prices for customers.
“Which does not make sense to me is why we have this conversation while Hyundai Kia imports 600,000 units in the United States without incremental tariff, and why is Toyota capable of importing 0.5 Million of vehicles in the United States without incremental tariff “,” Farley said when calling the results.
“So, if we want to have a price policy that lasts a month or anything, it is better to be complete for our industry,” continued Farley. “We cannot just choose one place or another because it is a boon for our import competitors.”
Trump on Monday announced 25% of prices on all imports of steel and aluminum. The United States is the largest steel importer in the world and mainly obtains its supply from Canada, Mexico and Brazil.
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