Ford CEO Says USMCA Is Vital to North American Auto Industry

Ford Motor Co’s chief executive Jim Farley said the United States-Mexico-Canada Agreement (USMCA) remains essential to the health of the North American auto industry, underscoring the sector’s reliance on deeply integrated cross-border supply chains.

Speaking at the Detroit Auto Show, Jim Farley said the trade pact allows automakers to operate efficiently across the three countries, with vehicles and components moving back and forth multiple times during production.

He said the agreement is “very critical” for the industry and for maintaining competitiveness against global automotive rivals.

• Ford CEO Jim Farley says USMCA is vital to North American auto industry
• Farley warns trade uncertainty could disrupt integrated auto supply chains
• Ford backs USMCA as Trump questions relevance of trade pact

Farley’s comments came a day after Donald Trump said the trade deal was “irrelevant,” renewing uncertainty around the future of USMCA trade deal as it approaches a scheduled review this year. The Trump administration has already imposed import tariffs on certain auto shipments from Mexico and Canada, though exemptions have limited the immediate impact on manufacturers.

Ford Executive Chair Bill Ford said shifting trade policies and regulatory changes have made long-term planning more difficult for automakers. He pointed to frequent changes in tariffs, emissions rules and incentives as factors that increase costs and reduce predictability for manufacturers investing billions in auto manufacturing investments.

Vehicle affordability remains a major concern for the industry. With average new-vehicle prices near $50,000, Ford executives said cost pressures are affecting consumer demand. Farley said the company plans to launch an electric pickup truck priced at $30,000 in 2027 as part of a broader strategy to expand access to lower-priced vehicles.

The United States-Mexico-Canada Agreement, which replaced NAFTA, governs trade among the three countries and is central to the auto sector, one of the most integrated industries in North America. Automakers argue that weakening or abandoning the pact would disrupt supply chains, raise production costs and ultimately lead to higher vehicle prices.

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Ford’s remarks echo concerns across the industry that trade policy uncertainty could undermine North America’s position in the global auto market.