According to media reports, Ford Motor Company CEO Jim Farley has called for a stronger U.S. industrial system and believes that selective tariff measures can encourage businesses to create jobs in "critical sectors of the economy."
On June 27, Farley emphasized the need to strike a balance between fostering a "level playing field" to support U.S. manufacturing and keeping vehicle prices affordable. "What I'm saying is that we need fair competition for full vehicle production," Farley stated. "When it comes to parts, we should import from around the world. We want to maintain stability in Mexico and other countries. That's the kind of goal we want to work with the government to achieve."
Farley suggested that a moderate tariff structure could be helpful. His comments mark a shift from February, when he harshly criticized former President Donald Trump's trade policies. At that time, Farley argued that those policies caused "massive costs and a lot of chaos," and warned that imposing import tariffs on goods from Mexico and Canada would deal an "unprecedented blow" to U.S. industry.
On June 27, Farley reiterated the importance of focusing on supporting blue-collar jobs in construction, manufacturing, agriculture, and skilled trades-rather than prioritizing white-collar employment. "If we have to defend ourselves, then what happens? Is Google going to build tanks?" he asked. "We've often talked about energy independence, but now we need to start talking about industrial independence. The public doesn't realize how much we, as a country, rely on imported goods."
As an example, Farley noted that Ford had to temporarily shut down some U.S. factories over the past three weeks due to a shortage of magnets, which contain rare earth materials. These critical components-used in seats, windshield wipers, doors, and audio systems-have become a central issue in U.S.–China trade tensions.
Farley also highlighted that Ford employs more United Auto Workers (UAW) members than any other automaker. He said that since the Great Recession, Ford has increased union jobs, while Stellantis and General Motors have reduced theirs.
Farley admitted that prior to Ford's 2023 contract negotiations with the UAW, he was unaware that many factory workers hadn't received pay raises in years. The negotiations ultimately resulted in a 25% wage increase and improved benefits. "It was costly," he said, "but I believe it's one of the transformations our country needs to undertake. It's not easy, because there's a lot of financial pressure." Farley added that more companies need to raise wages to help address the shortage of around 600,000 manufacturing jobs in the U.S.
