Ford Seeks USMCA Tariff Relief and $30K EV Pickup Production Boost
F•Ford CEO Jim Farley wants the USMCA review to eliminate 25% tariffs on auto parts to prevent another $2 billion tariff charge after paying $2 billion in 2025. He seeks penalties for non-compliance and confirmed plans to boost U.S. EV output with a $30,000 midsize pickup from the Louisville plant in 2027.
1. USMCA Reform Demands
Jim Farley outlined Ford’s priorities for the upcoming USMCA renegotiation, urging the removal of 25% tariffs on imported auto parts and the imposition of steep penalties on competitors who fail to meet regional content requirements. He emphasized the need for a level playing field for vehicles entering the U.S. from Mexico and Canada.
2. Toll of Tariffs
Ford incurred a $2 billion tariff bill in 2025 and expects a similar $2 billion hit in 2026. General Motors paid $3 billion last year and faces comparable charges this year, highlighting significant industry cost pressures under current trade terms.
3. Louisville EV Production Plans
Ford is retooling its Louisville Assembly Plant to produce electric vehicles on its new Universal Electric Vehicle platform. The factory will launch a $30,000 midsize pickup in 2027, with potential future models including compact SUVs or sedans as part of Ford’s U.S. EV expansion strategy.
