Ford CEO responds to Trump's statement about trade agreement being unnecessary

The head of the auto giant called the integration of the USA, Canada, and Mexico critically important for the industry.

Ford CEO Jim Farley spoke about the critical importance of the North American trade agreement for the automotive industry. His statement came just hours after President Donald Trump described the agreement as "irrelevant."

Automaker's Position on the Trade Agreement

Speaking at an event during the Detroit Auto Show on Tuesday evening, Farley emphasized that the company views Canada, Mexico, and the United States as a single integrated manufacturing system. According to him, this is the position Ford will take in negotiations, although the need to revise the terms is obvious.

The agreement between the U.S., Mexico, and Canada is scheduled for review this year. A decision will be made whether to terminate it or work out new terms. As a reminder, last year Trump imposed 25 percent tariffs on cars imported from these countries, while also providing mechanisms to reduce the fees.

"We could have it or not have it, it wouldn't matter to me"

Trump made this statement during his visit to the Ford plant on Tuesday.

Regulatory Issues and Policy Uncertainty

Ford Executive Chairman Bill Ford addressed the regulatory fluctuations the automaker is forced to deal with. This includes changing tariffs, relaxed emissions requirements, and uncertainty about the future of the trade agreement.

The executive noted that throughout his career, he has worked under such unstable conditions. In an ideal world, which he admits is unattainable, the company could count on some certainty in regulations.

Vehicle Affordability Issue

Company executives also discussed the problem of vehicle affordability—a topic Trump sought to address during his Detroit visit. Bill Ford stated the need to expand entry-level offerings for consumers, considering that the average price of a new car has approached $50,000, according to analyst estimates.

According to the chairman, affordability is a serious problem that is being actively discussed within the company. Many plans have been developed to address it, including launching an electric pickup truck priced at $30,000 in 2027. Additional measures will be announced later.