One significant difference between Donald Trump’s first term and his second is the huge amount of consent and knee-bending corporate America seems willing to do in response to his standard-breaking behavior. But at least one major US executive is starting to split under the pressure of the Trump -Tari regime: Ford’s Director -General Jim Farley is ringing the alarm bells For US cars, warning that immediate import penalties will immediately put a difficult squeeze on the industry.
Speaking at Wolfe Research Conference in New York on Tuesday, Farley said That Trump’s policies have so far led to “a lot of cost and a lot of chaos.” Trump spoke several times about the car -industry, going so much that he claims he “saved” it during his Inaugural addressBut Farley warned that he may only end it: “Let’s be really honest, long term, a 25% rate across the Mexico and a Canadian border will blow a hole in the US industry we have never seen,” he said.
As Farley noted during his appearance in the conference, the rates have a double impact on US vehicles. First, it hits cars importing materials it inevitably Transfer to consumers. But it also means that rival manufacturers including Korean, Japanese, and European companies would not be subject to the same costs, allowing them to be considerably more competitive on prices. Farley said it would be “one of the biggest whirlwind for those companies ever.”
This changes a bit of a rhythm for Farley, who before Trump took office, seemed self -confident that things would be great. Ford donated $ 1 million plus some vehicles At Trump’s inauguration to fat the wheels, and Farley essentially pushed away Trump’s tariff threats in December, when they were just a theoretical threat. “After 120 years, we are quite experienced in political change,” He said at the timeInsist “Ford is very well positioned” to withstand any storm.
Quickly forward to February and it turns out that the storm is worse than Farley predicted. He warned that his company was likely to Looking at some important layoffs If Trump’s proposed rates take effect and say the impact would be “devastating” for the industry as a whole.
Other car executives are trying to keep their comfort on the situation. At the same conference, Mary Barra, GM’s Director General said Her company could mitigate as much as half of the new costs created by rates and the company is “prepared” for the next steps that may follow. But Farley seems to lose his cold, and he certainly won’t be the last executioner to publicly start sweating, as Trump goes up the heat.
