Ford CEO Jim Farley Is Gloves Off With TrumpFord CEO Jim Farley Is Gloves Off With Trump

Ford CEO Jim Farley is not backing down or sitting on his hands while President Donald Trump orders tariffs on all goods coming from Canada and Mexico, and separate but potentially overlapping tariffs on steel and aluminum coming from the two countries.

During a Wolfe Research investment conference, Farley explained Tuesday that “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 one of his most signature accomplishments.”

So far, however, “what we’re seeing is a lot of cost and a lot of chaos,” Farley says. Ford is looking for ways to build up inventory in the U.S. to deflect the blow of Trump’s tariffs at least in the short term.

Farley is clearly trying to get the attention of policymakers and the media. During the automaker’s year-end earnings call, Farley said, “There’s no question that tariffs at a 25% level from Canada and Mexico, if they’re protracted, would have a huge impact on our industry, with billions of dollars of industry profits wiped out and an adverse effect on the U.S. jobs.

“Let's be real honest: Long term, a 25% tariff across the Mexico and Canada borders would blow a hole in the U.S. industry that we've never seen," Farley said. "Frankly, it gives free rein to South Korean, Japanese and European companies that are bringing 1.5 million to 2 million vehicles into the U.S. that wouldn't be subject to those Mexican and Canadian tariffs. It would be one of the biggest windfalls for those companies ever."

Farley made the comments the day before he was scheduled to go to Washington to jawbone lawmakers and policymakers about the threatened tariffs.

Trump’s motivation in driving the tariffs is thought to be his desire to bring Canada to its economic knees, compelling the country to join the U.S. as a state. That idea seemed to come out of nowhere during last year’s campaign season. Though a longshot to happen, with less than 10% of Canadians polled favoring the idea, annexing Canada would assure Trump’s place in history.