Ford CEO says Trump’s tariffs are causing ‘chaos’ in the automotive industry

Detroit – President Donald TrumpTariffs, both implemented and threatened, are causing “chaos” for the United States automotive industry, according to Ford motor CEO Jim Farley.

The executive director of the second largest car manufacturer in the United States described 25% tariffs on steel and aluminumas well as the threatened taxes of the same amount in Mexico and Canada, since they currently add “many costs and much chaos” to the industry.

“President Trump has spoken a lot about making our automotive industry in the United States stronger, bringing more production here, more innovation in the United States, and if his administration can achieve it, it would be one of … the most characteristic achievements “Farley said Tuesday during Tuesday during a Wolfe Research Conference. “Until now, what we are seeing is a lot of cost and a lot of chaos.”

Farley and the incoming Ford Cfo Sherry House said that most of the company’s steel and aluminum have a national origin; However, there are suppliers of the car manufacturer that obtain these materials outside the country, which could have an impact on costs.

House said that the biggest concern for the company is all these actions that seem relatively minimal, even in suppliers, which combine to negatively affect the business of the car manufacturer.

“We will have to deal with that. That’s what I am talking about the cost of chaos. A little here, a little there … This is what we are dealing with right now,” Farley said.

Farley seemed more concerned about the possible duties of the goods of Mexico and the United States, saying that a 25% long -term tariff that could go into force as soon as March 1 would be “devastating” and “fly a hole in The United States industry that we have never seen. “

Farley said that he travels on Wednesday to Washington, DC, for the second time in three weeks to meet with government officials, including members of Congress, to emphasize how political uncertainty is affecting the industry.

Last week, Farley also said that if the Trump administration will implement tariffs that affect the automotive industry, a Look “integral” to all countries.

Farley pointed to Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan and South Korearespectively, that they have few or no task compared to the Trump 25% tariff Plan to impose on Canada and Mexico.

Ford regularly promotes its American business, even in advertising campaigns. The company is the number 1 car producer in the United States, with most vehicles gathered in the country and exported to other countries.