Ford CEO says tariffs could 'blow a hole' in US auto industry
Published On Feb 11, 2025, 4:24 PM
Ford's CEO, Jim Farley, expressed significant concerns regarding proposed tariffs on vehicles imported from Mexico and Canada, predicting they could severely harm the U.S. auto industry. He described the current tariff situation as creating 'a lot of cost and a lot of chaos'. Farley warned that a long-term implementation of 25% tariffs could disproportionately benefit foreign competitors, particularly from Asia and Europe, at the expense of American manufacturers like Ford. Despite Ford's relatively lower dependence on imports compared to competitors like General Motors, the CEO cautioned that these tariffs could lead to significant challenges for the entire industry.
Stock Forecasts
F
Negative
Given the potential negative impact of tariffs on the U.S. auto industry, particularly how it may hinder domestic growth and allow foreign competitors to thrive, Ford (F) may experience headwinds in its stock performance. Investors may react negatively to this regulatory environment, fearing that increased costs could erode profits or market share.
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