Ford CEO says Trump's tariff reprieve is helpful, but more changes needed

LOUISVILLE, Kentucky – President Donald Trump's reprieve for automotive parts tariffs is helpful, but still not enough to help with growing the U.S. auto industry, Ford Motor CEO Jim Farley said Wednesday.

The new actions reimburse automakers for some U.S. parts and reduce the "stacking" of tariffs upon each other for the industry.

Trump signed an executive order implementing the changes on Tuesday after pleas from the automotive industry for relief amid regulatory uncertainty around Trump's tariffs, including 25% on imported vehicles into the U.S.

"The changes this week on tariff plans will help ease impact on tariffs for automakers, suppliers and consumers, but … we need to continue to work closely with the administration on a comprehensive set of policies to support our shared vision of that healthy and growing auto industry, and we are not there yet," Farley said during a launch event for the 2025 Ford Expedition in Kentucky.

Farley said it's "essential" for U.S. policies to encourage exports as well as reward companies, such as Ford, for their American production.

"Shouldn't we get credit for that?" Farley said. "Those are American jobs and we have to keep working on affordable parts to ensure that those supply chains promote domestic growth and affordable vehicles in our country."

Tariffs of 25% on imported vehicles into the U.S. will continue, but the new measures aim to reduce the overall tariff level that had resulted from separate levies — such as an additional 25% tariffs on steel and aluminum — "stacking" on top of one another.

Under the order, additional 25% tariffs on auto parts that were set to start by May 3 will also still take effect, but vehicles that go through final assembly in the U.S. will be able to qualify for partial reimbursements on those levies for two years.