Ford CEO Jim Farley Says Trump’s Tariff Reprieve Helpful, But More Changes Needed

Ford Motor CEO Jim Farley on Wednesday welcomed the executive order signed by President Donald Trump, which aimed to ease some of the burdens caused by automotive tariffs, but cautioned that more policy changes are still needed to strengthen the U.S. auto industry.

The new actions, which were announced on Tuesday, include reimbursements for some U.S. parts used in vehicle production and a reduction in the "stacking" of tariffs, such as the additional 25% duties on steel and aluminum. However, Farley noted that the changes, while helpful, are not enough to fully address the challenges facing the industry.

“The changes this week on tariff plans will help ease the impact on tariffs for automakers, suppliers, and consumers, but … we need to continue to work closely with the administration on a comprehensive set of policies to support our shared vision of that healthy and growing auto industry, and we are not there yet,” Farley said during a launch event for the 2025 Ford Expedition in Kentucky.

Essential Policy Adjustments

Farley emphasized the importance of U.S. policies that both encourage exports and reward companies like Ford for their domestic production. He argued that manufacturers should be recognized for the jobs they create in the U.S., stating, “Shouldn’t we get credit for that? Those are American jobs, and we have to keep working on affordable parts to ensure that those supply chains promote domestic growth and affordable vehicles in our country.”

Under the new executive order, tariffs of 25% on imported vehicles into the U.S. will remain in place. However, the measures will reduce the overall tariff burden that automakers face by mitigating the effects of "stacking" tariffs. The order also ensures that vehicles assembled in the U.S. will be eligible for partial reimbursement on auto parts tariffs for a two-year period, even though a 25% tariff on auto parts, set to begin on May 3, will still go into effect.

Impact on the Auto Industry

The new tariff relief comes after months of uncertainty surrounding the Trump administration’s trade policies, which have created significant challenges for the automotive industry. The executive order, which seeks to reduce some of the regulatory pressures on manufacturers, is seen as a response to pleas from industry leaders who have been pushing for tariff reforms to support growth.

Despite the temporary relief provided by the executive order, Farley made it clear that the auto industry needs further policy changes to ensure long-term sustainability and growth. He reiterated the need for a comprehensive set of policies that will allow U.S. automakers to remain competitive on the global stage while also strengthening domestic production capabilities.