Tuesday, on CNBC’s “Squawk Box,” Ford CEO Jim Farley praised the Trump administration’s tariffs on heavy-duty trucks and said he was “very optimistic” about working with the administration to address the parts tariffs as a “headwind.”
Co-host Andrew Ross Sorkin said, “Let me let me ask you about tariffs and where you think things stand, what you expect to happen to the tariffs from a legal perspective and how you’re confronting them yourself at this point?”
Farley said, “Well, we had a huge announcement. The Trump Administration announced that they’re looking at 232 tariffs for heavy duty trucks. This is a really big deal for our country and for Ford. Companies like PACCAR and Ford, we make all of our heavy duty trucks in America. We have a lot of competition from overseas, and a 25% tariff will be a really big deal.”
He continued, “On the parts tariff side, for the vehicles we do build in the United States, there are a lot of parts that we don’t make in the U.S. Those are getting tariffed 25%, 70% and we need to make those more affordable. It is a $2 billion headwind for Ford that really restricts our future investment. We’re working with the administration. They’ve been incredibly open on solutioning around that. And I’m very optimistic we’ll find a solution on the parts tariff. But a lot more work to do, I think. You know, we’re closer, I think, to solving some of these tariff issues.”
Farley added, “We need flexibility on importing parts because that is the key part. 20, 30% of our parts, we need to be able to import them. You know, in a way without huge tariffs to make our vehicles more affordable that we do make here.”
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