Ford Motor Company’s Chief Executive Officer, Jim Farley, has welcomed the recent easing of auto import tariffs but emphasized the need for a more comprehensive and strategic overhaul of U.S. trade policies to ensure long-term growth and competitiveness of the nation’s automotive industry.
Speaking during the official unveiling of the 2025 Ford Expedition SUV at the company’s expansive truck manufacturing facility in Kentucky, Farley praised recent government actions while urging further reforms. His remarks come on the heels of President Donald Trump’s decision to partially roll back the controversial 25% tariffs imposed on foreign automobiles and auto parts.
Support for Tariff Relief, But Not a Complete Solution
Farley expressed support for the recent changes to the U.S. auto tariff structure, saying they will provide temporary relief to automakers, parts suppliers, and consumers. The changes are expected to ease cost pressures and reduce disruptions that have burdened the automotive supply chain in recent years.
“The changes this week on tariff plans will help ease the impact of tariffs for automakers, suppliers, and consumers,” Farley noted during his speech. “But this is what we really care about — we need to continue to work closely with the administration on a comprehensive set of policies to support our shared vision of a healthy and growing auto industry. And we are not there yet.”
His comments highlight a growing concern among industry leaders that temporary relief measures, while welcome, may not be enough to address the structural challenges facing the U.S. auto sector in a highly competitive global market.
Ford’s Domestic Production Commitment Highlighted
Farley also used the opportunity to showcase Ford’s commitment to domestic manufacturing, emphasizing that the company continues to lead in U.S. production volumes compared to many of its rivals. He pointed out that Ford’s operations are deeply rooted in American soil, not only through vehicle assembly but also through job creation and supplier partnerships.
“We are proud of our record of building more vehicles in the United States than any other automaker,” he said. “The 2025 Ford Expedition is a symbol of that commitment — designed, engineered, and built right here in Kentucky.”
This emphasis on domestic output was intended not only to reinforce Ford’s patriotic credentials but also to distinguish the automaker from foreign-based competitors that rely more heavily on imports.
Trade Policy Reform: A Broader Vision Needed
While acknowledging the benefit of the tariff relief, Farley argued that piecemeal policy adjustments are insufficient to maintain America’s leadership in automotive innovation and production. He called on policymakers to work collaboratively with industry stakeholders to craft a forward-looking and balanced trade policy framework.
According to Farley, such reforms should encourage investment in local manufacturing, strengthen supply chains, support innovation in electric vehicles (EVs), and provide fair competition in international markets.
“We need a cohesive trade strategy that encourages American companies to invest and grow here, not just survive,” he said. “Our competitors in Europe and Asia enjoy the support of targeted policies that enable them to compete globally — we need the same clarity and commitment here.”
Impact of Tariffs on the Auto Industry
The original tariffs, part of the Trump administration’s aggressive trade stance, had caused significant strain across the auto industry. Automakers faced increased costs for imported components, leading to higher vehicle prices and, in some cases, delayed production timelines.
While intended to protect domestic manufacturing, critics argued the tariffs had unintended consequences, including inflationary pressures and reduced competitiveness of American-made vehicles in global markets. Some companies responded by shifting parts of their production overseas, undermining the original intent of the policy.
The recent rollback aims to correct some of those impacts, but industry leaders like Farley say that more sustainable, long-term solutions are needed.
Call for Partnership Between Industry and Government
Farley ended his speech with a strong appeal for collaboration between the federal government and the auto industry. He stressed that the next phase of growth for the U.S. auto sector will require public-private partnerships focused on workforce development, green mobility, and infrastructure upgrades.
He also highlighted the importance of aligning industrial policy with environmental goals, especially in the context of the EV transition. With global competitors racing ahead in electrification, Farley warned that the U.S. risks falling behind without strategic support.
“The future of the auto industry is electric, connected, and sustainable,” he said. “And we need policies that help us get there — not just protect the past.”
Looking Ahead
Farley’s remarks reflect a broader sentiment within the auto industry: while immediate policy relief is appreciated, the need for long-term, stable, and growth-oriented trade policies remains urgent. As global competition intensifies, American automakers are calling for consistent and constructive engagement from policymakers to help chart a resilient and competitive path forward.
With Ford continuing to invest in American facilities and innovation, Farley hopes that a renewed focus on collaborative policymaking can secure the future of not only Ford, but the broader U.S. automotive industry.