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Jun 2, 2025  |  
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Tom Howell Jr.


NextImg:Ford Motor Co. says tariffs threats are causing ‘chaos’ in industry

Foreign officials outlined broad plans to retaliate over U.S.-imposed tariffs on key metals and Ford Motor’s chief executive on Tuesday said levies — both real and proposed — are causing “chaos” as the world grapples with President Trump’s shock-and-awe trade policy.

Ford CEO Jim Farley said Mr. Trump can notch a “signature” achievement if he follows through on his pledge to spur automobile innovation and production within the U.S.

“So far what we’re seeing is a lot of cost and a lot of chaos,” he said at a Wolfe Research conference.



Mr. Trump imposed a 25% tariff on steel and aluminum Monday, and plans to slap reciprocal tariffs on countries that tax U.S. exports. He’s also vowed a sweeping 25% tariff on all goods from Mexico and Canada if they don’t meet his immigration and drug-enforcement demands, a threat with sweeping implications for the auto industry.

The president also has imposed a 10% tariff on all imports from China. Beijing has responded with tariffs of 15% on coal and liquefied natural gas products, and 10% on crude oil, agricultural machinery and large-engine cars from the U.S.

Ford officials said they source most of their metals domestically but suppliers who get materials from outside the U.S. are seeing added costs here and there, which add up.

“We’ll have to deal with it. That’s what I’m talking about, [the] cost of chaos,” Mr. Farley said. “A little here, a little there.”

He said tariffs on Canada and Mexico, if they come to pass, would “blow a hole in the U.S. industry that we’ve never seen.”

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The auto giant weighed in one day after the European Union called Mr. Trump’s levies on steel and aluminum unjustified and said they planned to retaliate.

“The E.U. will act to safeguard its economic interests. We will protect our workers, businesses and consumers,” said Ursula von der Leyen, president of the European Commission, the main executive arm of the E.U.

Tariffs are a tax or duty paid by importers on the goods they bring in from foreign markets.

Mr. Trump says tariffs force companies to return to America or keep their operations in the U.S., employ American workers and create revenue to fund domestic programs.

The president is just getting started on trade. He’s set to announce his reciprocal tariffs on other nations, friend and foe alike, by midweek and his U.S. trade representative, Jamieson Greer, is moving toward confirmation.

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“I am confident that Mr. Greer has the experience and determination to advocate successfully for American farmers, ranchers, workers and manufacturers,” Senate Finance Committee Chairman Mike Crapo, Idaho Republican, said Tuesday as part of an executive session on the nomination.

Sen. Ron Wyden, Oregon Democrat, said he enjoyed his meetings with Mr. Greer but feared he would be a “rubber stamp” for Mr. Trump’s tariffs, which the senator characterized as a new tax on Americans.

“No results, higher costs for Americans and small businesses,” Mr. Wyden predicted.

Mr. Trump is trying to protect U.S. steelworkers by making foreign steel more expensive, angering targeted nations. A top Canadian official called the tariffs “totally unjustified.”

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“Our response will be clear and calibrated. We will continue to stand up for Canada, support our workers and defend our industries as we have always done and always will,” said François-Philippe Champagne, the minister for Innovation, Science and Industry of Canada.

Ms. von der Leyen, meanwhile, got the chance to address the situation directly on Tuesday with Vice President J.D. Vance, who is on a European trip.

Their conversation occurred behind closed doors, and Ms. von der Leyen was cordial afterward.

“Thank you for a good discussion on our shared challenges as allies. From security and stability to the great promise of technology and the critical challenge of non-market overcapacity,” she wrote on X. “Looking forward to continued cooperation with [Mr. Trump] and you.”

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Before the meeting, Mr. Vance said he looked forward to building a strong economic and security relationship “that’s good for both, Europe and the United States.”

• Tom Howell Jr. can be reached at thowell@washingtontimes.com.