Ford Motor Co., CEO Jim Farley gives the thumbs up sign before announcing Ford Motor will partner with Chinese-based, Amperex Technology, to build an all-electric vehicle battery plant in Marshall, Michigan, during a press conference in Romulus, Michigan February 13, 2023.
Rebecca Cook | Reuters
DETROIT — Ford Motor CEO Jim Farley on Wednesday said if the Trump administration is going to implement tariffs affecting the automotive industry, it should take a “comprehensive” look at all countries.
Farley singled out Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively, that have little to no duties compared with the 25% tariff President Donald Trump has threatened imposing on Canada and Mexico.
“There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs],” Farley said during the company’s fourth-quarter earnings call with investors. “So if we’re going to have a tariff policy … it better be comprehensive for our industry.
“We can’t just cherry pick one place or the other because this is a bonanza for our import competitors.”
Farley’s comments follow Trump implementing a 10% additional tariff on goods from China, which include automobiles, and ongoing negotiations with Canada and Mexico regarding 25% levies on imports from those countries to the U.S.
For years, Ford has touted its investments in the U.S., as well as having the most American workers of any automaker, even as it is considered a disadvantage to its business.
GlobalData reports 46.6% of all vehicles sold in the U.S. last year were produced outside of the country. South Korea, at 8.6%, and Japan, at 8.2%, rank second and third in vehicle imports, only trailing Mexico, at 16.2%, GlobalData reports.
Cars imported from South Korea currently have no tariffs, while those imported from Japan are subject to 2.5% duties. Truck imports for the countries are 25%.
Aside from Hyundai and its sibling company Kia, General Motors imports a notable amount of vehicles tariff-free from South Korea.
Nissan Motor and Honda Motor, along with smaller carmakers such as Subaru, also import vehicles from Japan, along with Toyota.