Trump’s new 25% tariffs on steel and aluminum imports are rattling the auto industry, with Ford CEO Jim Farley warning of “cost and chaos.” Meanwhile, GM CEO Mary Barra claims the company can soften up to 50% of the impact, as automakers brace for potential additional tariffs on Mexico and Canada.
U.S. steel and aluminum imports were hit with a 25% duty on Monday, following a month-long deferral in the imposition of duties on Mexico and Canada by the Trump administration.
The car industry has been hit hard by Trump’s decision, with CEO Jim Farley claiming that the tariffs have simply caused more “cost and turmoil” (as reported by Automotive News), and CEO Mary Barra of GM has said that the company could be able to reduce the tariffs’ impact by as much as half.
“President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation to the U.S., and if this administration can achieve that, it would be, I think, one of the most signature accomplishments,” Farley said at an event on Tuesday. “So far, what we’re seeing is a lot of cost and a lot of chaos.”
Ford is trying to stock up wherever it can in anticipation of the much-delayed implementation of Trump’s original plans to impose 25% tariffs on all products imported from Mexico and Canada.
Although Ford anticipates bearing part of the extra costs experienced by other suppliers, the majority of its steel and aluminum supplies still originate in the United States. This is in spite of the recently implemented metal tariffs.
The Trump administration’s intentions for the car sector have been met with some optimism by Ford, according to other recent remarks. In a recent statement, Bill Ford, Executive Chairman, acknowledged that Trump “clearly understands the importance of [the auto] industry.” He went on to say that he is aware that the U.S. President “wants to be helpful” and expressed “very confidence” that Ford will have a voice in future discussions regarding the administration’s auto initiatives.
While General Motors has been relatively quiet in response to the news, other companies, like as Canadian supplier Linamar, have been vocal in their criticism of the tariff measures. According to Barra, GM could reduce the financial impact of these tariffs by 30–50% without raising more money.
In response, Barra stated, “We are prepared when we know exactly what’s going to happen,” as described in a second piece from Automotive News. “Of course, if tariffs are longer, there’s additional things that we’ve studied that we know we can do from a capital-efficient way.”
After Trump postponed the plans by requesting that the militaries of both Canada and Mexico assist with border security, delaying the plans by one month, it is still unclear whether or not he will impose the more extensive tariffs on both countries.
Following the lead of numerous other nations that have imposed fresh tariffs on China in recent months, the Trump administration has imposed a 10% duty on Chinese imports.
Luis Gochoco is a seasoned managing editor and writer with over a decade of experience covering politics, technology, gaming, and entertainment news. With a keen eye for breaking stories and in-depth analysis, he has established himself as a trusted voice in digital journalism. Luis is one of the key forces behind the success of GameNGuide, contributing to 12 million views through engaging and high-traffic content. He also played a pivotal role in generating 8 million views on International Business Times, shaping the platform’s technology and gaming coverage.
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