The business landscape has been shifting significantly following President Trump’s re-election, with many CEOs adjusting their strategies to align with the administration’s policies. While diversity and inclusion initiatives are being rolled back, and major executives, including Apple’s Tim Cook, have contributed heavily to Trump’s inauguration fund, not all corporate leaders are staying silent.
Speaking at a recent industry conference, Ford CEO Jim Farley has openly criticized the administration’s trade policies, particularly regarding tariffs, noting that while the president has promised to strengthen the U.S. auto sector, the current impact has been more disruptive than beneficial. “President Trump has talked a lot about making our US auto industry stronger,” Farley stated, “but so far what we’re seeing is a lot of cost and chaos.”
A key point of contention is the imposition of tariffs on imports from Canada and Mexico, two nations that have long been integral to U.S. manufacturing due to their lower labor costs and free-trade agreements. While the administration has temporarily delayed a 25 percent tariff on Canadian and Mexican imports, it has proceeded with heavy duties on imported steel and aluminum, reviving concerns from Trump’s previous term when similar tariffs led to a trade war.
Farley warned that if these policies continue unchecked, they could inflict unprecedented damage on the U.S. auto industry. “Let’s be real honest: long-term, 25 percent tariffs across the Mexican and Canadian border would blow a hole in the US industry that we have never seen,” he cautioned. Such measures, he argued, could unintentionally benefit automakers in Japan, South Korea, and Europe, giving them a competitive edge over American manufacturers.
Automakers, including Ford, are grappling with policy volatility that makes long-term planning difficult. As the CEO of Polestar recently expressed, stability is crucial for the industry, and sudden regulatory changes only create uncertainty. Farley echoed this sentiment, emphasizing the challenges of adapting to shifting policies.
“They need to understand there’s a lot of policy uncertainty here, but in the meantime, we’re scrambling to manage the company as professionals,” he said.
