Ford CEO Highlights Trade Deal with Mexico and Canada as 'Vital' for Industry

• Ford views Canada, Mexico, and the U.S. as an 'integrated manufacturing system' and considers USMCA vital, though the company seeks revisions to the agreement
• Trump imposed 25% tariffs on auto imports from Mexico and Canada last year, though workarounds have reduced the levies, contributing to regulatory uncertainty
• Ford executives highlighted affordability concerns as average new vehicle prices approach $50,000, announcing plans for a $30,000 electric pickup in 2027

Ford CEO Calls North American Trade Deal "Critical" Amid Trump Dismissal

Key Developments:

Ford Motor Co. CEO Jim Farley emphasized the vital importance of the United States-Mexico-Canada Agreement (USMCA) to the automotive industry, directly contradicting President Trump's claim that the deal is "irrelevant." Speaking at the Detroit Auto Show on January 13, 2026, Farley stated that Ford views Canada, Mexico, and the U.S. as "an integrated manufacturing system," though he acknowledged revisions are needed.

Trade Policy Context:

The USMCA is under review this year to determine its future. Trump previously imposed 25% tariffs on auto imports from Canada and Mexico, though workarounds have reduced effective levies. At a Ford plant visit the same day, Trump stated the trade deal "wouldn't matter to me" whether it exists or not.

Regulatory Concerns:

Executive Chair Bill Ford highlighted the challenge of "regulatory whiplash," including fluctuating tariffs, changing emissions rules, and USMCA uncertainty. He emphasized the industry's need for regulatory certainty, a condition he acknowledged will never be perfect.

Affordability Crisis:

Both Ford leaders identified vehicle affordability as a critical 2026 concern, with average new vehicle transaction prices approaching $50,000. Ford announced plans to launch a $30,000 electric pickup in 2027 and develop additional entry-level options. CEO Farley cautioned stakeholders to "be very careful about consumer demand."

Market Implications:

The divergence between industry and administration perspectives on trade policy creates uncertainty for automakers' North American supply chain strategies, potentially affecting manufacturing decisions, pricing, and competitiveness in an already challenging affordability environment.