‘Costs And Chaos!’ Ford CEO Warns Trump Tariffs Will ‘Blow A Hole’ In Auto Industry

(Photo by Kristoffer Tripplaar/Sipa USA)(Sipa via AP Images)

Ford CEO Jim Farley warned that President Donald Trump’s tariff threats will “blow a hole” in the auto industry and manufacturers faced a spike in “costs” and “chaos.”

Speaking at a Wolfe Research conference on Tuesday, according to Axios, Farley warned that Trump’s tariff-heavy trade tactics, whether targeting neighbors like Canada and Mexico or raw materials like steel and aluminum, are poised to wreak havoc on his industry.

“Let’s be real honest long-term: a 25% tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen,” Farley declared.

Farley pointed out that many U.S.-made vehicles rely on parts that cross North American borders multiple times during assembly—meaning each crossing could trigger new costs. The tariffs on steel and aluminum also tax the very materials that the cars are built from.

GM executives at the same event admitted they’re scrambling to soften the blow. CEO Mary Barra told investors they could only “mitigate 30 to 50 percent of tariffs without deploying capital.”

Patrick L. Anderson, CEO of the Anderson Economic Group, said that tariffs could deliver “a triple-whammy for the auto industry” and “hammer” state economies in Michigan, Ohio, Indiana.

Farley told attendees that he is headed to Washington for the second time in three weeks to plead the industry’s case.

He continued: “They need to understand that there’s a lot of policy uncertainty here, but in the meantime, we’re scrambling to manage the company as professionals and we’re in a global race.”

“We’re expecting and hoping there will be a pony in here for the auto industry. Right now, we’re doing a lot of shoveling,” Farley added.