Ford Motor CEO Jim Farley spoke at the launch event for the 2025 Ford Expedition in Louisville, Kentucky on April 30, 2025.
Michael Wayland | CNBC
Louisville, Kentucky - President Donald Trump is very helpful in probation on auto parts tariffs, but more changes are still needed to assist automakers and grow the U.S. auto industry, Ford electric motor CEO Jim Farley said Wednesday.
Trump signed a new action through an executive order on Tuesday - to repay certain parts from the U.S. and reduce "stacked" tariffs on the industry.
Tuesday's change comes after a request from the automotive industry in the regulatory uncertainty of Trump's tariffs, including 25% of imported vehicles entering the U.S., while by May 3, the upcoming 25% of auto parts.
“This week’s changes in tariff plans will help mitigate the impact on automakers, suppliers and consumers, but… we need to continue working closely with the government to develop a comprehensive set of policies to support our shared vision for this healthy and growing automotive industry, which we are not yet there.
A worker at Ford Kentucky Truck Factory on April 30, 2025.
Michael Wayland | CNBC
Farley said that encouraging exports and reward companies, such as Ford, is “essential” to U.S. production.
"Many of the vehicles we build here are exported globally. Shouldn't we gain credibility for this?" Farley said. “These are American jobs and we must continue to work on affordable parts to ensure these supply chains promote domestic growth and affordable vehicles in our country.”
Ford is the largest vehicle manufacturer in the United States, he said it is a net exporter of parts and vehicles based on the total value of the goods, and is a net exporter of nearly every vehicle. A net exporter means that the company's exports exceed imports.
If the competitor matches Ford's manufacturing business, Farley has raised a lot about the impact on the U.S. automotive industry and the U.S. He said the action means adding 4 million cars each year, 15 new manufacturing plants and more than 500,000 new manufacturing jobs
"Imagine if the U.S. imports all vehicles, like Ford, treats U.S. manufacturing," Farley said.
The 25% tariff on imported vehicles entering the U.S. will continue, but the new measures aim to reduce the overall tariff levels arising from separate taxes (e.g., the additional 25% tariff on steel and aluminum - "stacked" to each other.
Under the order, a 25% tariff on auto parts that will begin on May 3 will still be in effect, but vehicles passing final assembly in the United States will be eligible for partial reimbursement of a two-year levy.