Recent Changes to Tariff Regulations

During a press event in Louisville, Kentucky, on April 30, 2025, Ford Motor Company’s CEO, Jim Farley, acknowledged the recent modifications to automotive parts tariffs signed by former President Donald Trump. He described these adjustments as beneficial but emphasized that further initiatives are essential to aid automakers and promote the growth of the U.S. auto industry.

The Impact of the Executive Order

The executive order includes provisions that reimburse manufacturers for certain U.S. parts expenditures and mitigate the accumulation of multiple tariffs. This reform follows considerable requests from the automotive sector for relief concerning Trump’s existing tariffs—a 25% levy on imported vehicles and an impending 25% tariff on automotive parts effective May 3.

Farley stated, “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.”

Encouraging U.S. Exports and Domestic Growth

Farley highlighted the necessity for U.S. policies to incentivize exports while rewarding domestic manufacturing efforts. “So many of the vehicles we build here are exported around the globe. Shouldn’t we get credit for that?” he remarked. He stressed the importance of affordable parts to foster local growth and maintain competitive vehicle pricing.

As the largest vehicle producer in the United States, Ford asserts its status as a net exporter of both parts and complete vehicles, facilitating job creation and economic stimulation.

Future Scenarios for the Auto Industry

Farley outlined some hypothetical scenarios regarding potential expansions in the U.S. automotive sector if competitors embraced similar manufacturing practices as Ford. He speculated that such shifts could lead to an increase of 4 million vehicles annually, the establishment of 15 new manufacturing plants, and the creation of over 500,000 jobs.

Ongoing Tariff Challenges

Despite the changes, the 25% tariffs on imported vehicles will remain in effect. However, the new regulations aim to lower the cumulative tariff burden that has arisen from additional tariffs, such as those on steel and aluminum. The order stipulates that the additional 25% tariffs on auto parts will continue, but vehicles assembled in the U.S. can qualify for partial reimbursements over the next two years.