On CNBC’s Squawk Box, Ford CEO Jim Farley applauded President Trump’s proposed 25 percent tariff on heavy‑duty trucks, calling it an opportunity to level the playing field for American manufacturers. He acknowledged, however, that parts tariffs—ranging from 25 to 70 percent—create a major “headwind” for Ford, adding roughly $2 billion in costs. Farley expressed optimism that solutions are within reach through ongoing negotiations with the administration.
Farley told co‑host Andrew Ross Sorkin the administration’s 232 investigation into heavy‑duty truck imports matters greatly to Ford, noting that Ford and PACCAR manufacture their large trucks largely in the U.S. He argued that a 25 percent tariff on imported heavy trucks would be “a really big deal” in favor of domestic producers. At the same time, he highlighted that many crucial internal parts—those not made in the U.S.—are now hit with steep tariffs, undermining Ford’s ability to invest and compete.
The CEO framed those parts tariffs as a $2 billion drag on Ford’s investment budget, but he emphasized active collaboration with the White House. “They’ve been incredibly open on solutioning around that,” Farley said, adding that he is “very optimistic we’ll find a solution” to ease the burden. He stressed that about 20 to 30 percent of Ford’s internal components must be imported to maintain affordability, and they must do so without “huge tariffs.”
Farley said the path forward lies in flexibility—importing certain parts under favorable conditions so the final vehicles built in America remain competitive in cost. He echoed that the administration’s openness to negotiation gives him confidence, although “a lot more work remains to be done.”
