Ford CEO: 'Tariffs Would Mean Higher Prices for Customers'

Jim Farley is cautiously optimistic for the future, but didn't mince words about how potential tariffs would wreck the auto industry.

By: Christopher Smith

Feb 5, 2025 at 6:16pm ET

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Earlier this week, the Trump administration on Monday slapped—then rescinded—a 25-percent tariff on imports from Mexico and Canada. The issue will be revisited in a month, but virtually every financial analyst says tariffs would have significant impacts on a variety of US industries.

Speaking to the media during Ford's Q4 2024 financial conference call, company CEO Jim Farley wholeheartedly agreed with that evaluation. He said a few weeks of tariffs would've been manageable for Ford from an operational standpoint. But beyond that, all bets are off.

"There’s no question that tariffs at the 25 percent level with Canada and Mexico, if they’re protracted, would have a huge impact on our industry, with billions of dollars of industry profit wiped out, and adverse effects on US jobs as well as the entire value system in our industry," Farley said. "Tariffs would also mean higher prices for customers."

His statement comes as Ford announced full-year revenue for 2024 increased to $185 billion, with a net income of $5.9 billion. Farley highlighted Ford Pro, the company's commercial-focused division, as having an exceptional year, and went on to identify markets for smaller vans and trucks like the Maverick as having growth potential.

Tariffs would certainly have a significant impact in that segment. The Ford Maverick is built in Mexico, and Ford—like all US-based automakers—relies heavily on a supply chain that's existed for nearly a century. But Farley is cautiously optimistic about the prospects of tariffs going forward.

Photo by: Ford

"We believe, based on our conversations in DC with the Trump administration and congressional leaders, that they are committed to strengthening—not weakening—our nation's auto industry," he said. "That is certainly our expectation."

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The issue of tariffs comes amid uncertainty on how the new administration will approach vehicle emissions regulations and electrification. There's also increasing pressure from China, which Farley conceded was building great cars after test driving one himself. But amid the uncertainty, he emphasized that Ford was still in control of its future.

"While we are certainly operating in interesting times, at the end of the day, we control our destiny," he said.