Ford Motor Co. may be forced to lay off workers if the Trump administration eliminates subsidies and financial support for electric vehicle (EV) manufacturing, CEO Jim Farley warned Tuesday. Speaking at a conference in New York, Farley said Republican efforts to repeal Biden-era legislation that provides billions in subsidies and loans could put thousands of jobs at risk.
“Many of those jobs will be at risk,” Farley said, referring to Ford’s heavy investment in EV and battery production in Ohio, Michigan, Kentucky, and Tennessee. The company has committed significant resources to these factories, relying on federal support to make them financially viable.
Farley also strongly criticized former President Donald Trump’s proposed 25% tariffs on cars and components imported from Mexico and Canada. Ford manufactures several vehicles in Mexico, including the Maverick pickup and the Mustang Mach-E electric SUV, and produces engines in Canada.
“A 25 percent tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen,” Farley said, according to a Ford-provided transcript. “It gives free rein to South Korean, Japanese, and European companies that are bringing one and a half to two million vehicles into the U.S. that wouldn’t be subject to those Mexican and Canadian tariffs.”
Farley’s remarks at the Wolfe Research conference marked a rare instance of a major corporate executive publicly challenging Trump’s policies. Many business leaders have either praised Trump or remained silent, likely to avoid political retaliation.
Despite his criticism, Farley acknowledged Trump’s emphasis on strengthening the U.S. auto industry. “He has talked a lot about making our U.S. auto industry stronger, bringing more production here or innovation in the U.S.,” he said. However, he warned that recent policy proposals were creating “a lot of costs and a lot of chaos.”
Farley’s comments also underscored a political dilemma for Republicans. Many of the new EV manufacturing jobs are in states and districts represented by Republicans, meaning that cutting federal support could directly impact their constituents.
“If this administration can achieve that,” Farley said of Trump’s promises to boost domestic auto production, “it would be one of the most signature accomplishments.”