Trump’s Tariffs Causing Chaos In Auto Industry Says Ford CEO

After U.S. President Donald Trump approved the imposition of tariffs on all steel and aluminum imports this week, Ford and General Motors began assessing how to handle the expected cost increases, with the two companies adopting slightly different approaches in their responses.

The Trump administration officially imposed a 25% tariff on all steel and aluminum imports to the United States on Monday, following a one-month delay in applying these tariffs to Mexico and Canada.

In response, FordCEO Jim Farley stated that Trump"s decision has so far only led to increased "costs and chaos" in the automotive sector. On the other hand, General Motors CEO Mary Barra indicated that the company might be able to mitigate up to 50% of the impact of these tariffs, according to a report by Automotive News.

Farley said during an event on Tuesday, "President Trump has spoken a lot about strengthening the U.S. automotive industry, bringing more production here, and fostering more innovation in the United States. If this administration can achieve that, it would be a remarkable accomplishment. But so far, what we’re seeing is increased costs and a lot of chaos."

Ford is working to build up inventory where possible in preparation for broader 25% tariffs on all products from Mexico and Canada, in line with Trump’s original plans, which have now been delayed.

Despite the new tariffs on metals, Ford noted that most of the steel and aluminum materials it uses currently come from within the United States, though it also expects to bear some additional costs resulting from the impact of these tariffs on other suppliers.

In other recent remarks, Ford also expressed cautious optimism about the Trump administration’s plans for the automotive industry. Executive Chairman Bill Ford recently stated that Trump "clearly understands the importance of the automotive industry," adding that he believes the U.S. president "wants to be helpful" and expressing "strong confidence" that Ford will have a voice in future discussions regarding the administration’s automotive policies.

Meanwhile, other companies, including Canadian supplier Linamar, have openly criticized the tariff plans, while General Motors has taken a more cautious approach. Barra mentioned that GM could mitigate between 30% to 50% of the impact of these tariffs without needing additional capital.