Ford’s CEO has proposed stronger measures in the upcoming renegotiation of the United States-Mexico-Canada Agreement (USMCA) to protect American automakers from heavy competition by imported vehicles. He advocates for rewarding manufacturers that produce cars domestically while imposing penalties on rivals importing large volumes from countries like Japan and South Korea.
The current USMCA pact is set to expire in 2036, prompting all three member countries to prepare for fresh negotiations. The Ford leader emphasized that any new agreement should make it easier for US-based producers to compete effectively against companies that rely on imported cars. He pointed out that Ford leads American car manufacturing, assembling over two million vehicles in the US last year, representing around 80 percent of its domestic sales.
Despite its strong domestic production, Ford still imports a portion of its lineup from Mexico, including the Bronco Sport, Maverick, and Mustang Mach-E. However, these imports represent a much smaller share compared to Ford’s US-built vehicles, maintaining a 6:1 ratio.
The CEO highlighted Ford’s role as a major exporter and significant employer of unionized labor in the US, framing the company as a benchmark for domestic manufacturing commitment. His critique implicitly targeted rivals like General Motors, which imports a substantial number of vehicles—over a million last year—from South Korea and Mexico. GM’s imports accounted for about 41 percent of its US sales, including popular models such as the Chevy Trax and Silverado.
Farley argues that automotive trade rules should penalize companies importing cars made under labor conditions that undercut American wages and production costs. The upcoming USMCA revision offers a window to reshape the agreement in favor of more balanced manufacturing incentives across North America.