Jim Farley Pushes for Penalties on Rivals Importing Nearly Half Their U.S. Sales

Ford CEO Jim Farley is calling for trade policies that either reward domestic automakers like Ford or penalize rivals heavily reliant on vehicle imports. Speaking to CNBC, Farley argued that any new U.S.-Mexico-Canada trade agreement must “make it easier, not harder” for American manufacturers to compete against rivals that offshore production to Japan, South Korea, and other global hubs. His stance comes as the Trump administration prepares to renegotiate the United States-Mexico-Canada Agreement (USMCA), with key sticking points including trade deficits, local part content requirements, and provisions favoring American-made vehicles.

The push reflects Ford’s long-standing emphasis on domestic production: 83% of Ford vehicles sold in the U.S. are built in America, a figure Farley says leads the industry. The automaker claims it assembles “more than six vehicles in America for every one it imports.” In contrast, rivals such as General Motors and Toyota import a substantial share of their U.S. sales. GM imported 1.17 million vehicles last year, accounting for 41% of its U.S. sales, with key models like the Chevrolet Trax and Equinox, as well as most Buick models, coming from offshore plants.

Toyota, despite operating multiple U.S. plants, still imported over 1.19 million vehicles in 2025, meaning 47% of its U.S. sales were imported. Farley’s comments underscore Ford’s frustration with what it sees as an uneven playing field. While building in America supports local jobs and supply chains, it often comes at a higher cost compared to production in lower-wage countries like Mexico.

Farley suggested that automakers like Ford, which prioritize domestic manufacturing, should be rewarded through trade policy—or alternatively, rivals should face penalties for relying on imports. The outcome of the USMCA renegotiation remains uncertain, but Farley’s push highlights a growing divide in the auto industry over where vehicles are made and how trade agreements should reflect that.