Ford Fears That Trump’s Initiatives Will Have Negative Effects

The tariffs threatened by the administration of US President Donald Trump are negatively affecting American companies. Ford is facing high costs and chaos as a result, Ford CEO Jim Farley said.

US President Donald Trump keeps talking about wanting to boost manufacturing in the US, but his administration is a source of “tremendous uncertainty,” Farley told a financial conference.

He was particularly critical of the new tariff announcements and also criticized the lack of clarity in tax policy. It is not yet clear whether Trump will eliminate tax breaks that currently benefit electric cars in the United States, Farley said, according to the French agency AFP.

The Ford CEO was also critical of Trump’s decision to impose an additional 25% tariff on imports from Mexico and Canada, which were delayed by a month last week. According to Farley, the measures, if implemented, would be disastrous for American companies in the region. He also fears they would give an unfair advantage to European and Asian automakers exporting to the United States.

The US president has also imposed 25 percent tariffs on steel and aluminium imports for all countries, without exception. Farley explained that Ford primarily buys these metals from American companies, but it has suppliers that depend on international sources. So that will affect us as well,” he pointed out.

“President Trump has talked a lot about strengthening the American auto industry, increasing domestic manufacturing, and more innovation at home,” Farley recalled. But “so far, we’re just seeing a lot of costs and a lot of chaos,” he added

• Read More: Ford To Reduce Working Hours At Its Cologne Plant As EV Demands Are Low