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Ford CEO (F) Jim Farley seemed to President Trump’s introductory plans – but not the way many expected.
During the Ford Quarter’s four profit call, Farley warned that the long definitions of imports from Mexico and Canada, where Ford and GM (GM) make from the competition cars, will have a “devastating effect” on this industry, with the possibility of obtaining billions of dollars in The profits are eliminated.
But he identified other car manufacturers who import cars from outside America and do not pay any tariff at all, claiming that the current tariff plan that targets the two selected countries is not fair.
“What does not make sense is the reason why we are doing this conversation while (South Korea) Hyundai Kia imports 600,000 units in the United States without gradual tariff, and why (Japan) Toyota is able to import half a million vehicles in the United States with no gradual tariff? Farley said. “I mean, there are millions of vehicles coming to our country that are not applied to this, so if we have a tariff policy … it is better to be comprehensive for our industry.”
“We can not only choose one or another place because this is a reward for our import competitors,” Farley added.
Read more: What are the definitions, and how do you affect you?
While Toyota (TM) does not pay any gradual tariff on the vehicles it imports from Japan, they currently pay one of 2.5 %. Low definitions on Japanese vehicles are interesting, given the import wars that occurred in the 1980s, when the tariffs are on Japanese cars. 60 % exceeded in some cases.
As for Hyundai (Hymtf) and Kia sister, 67 % of its sales in the United States were the Korean vehicles, with a balance of American assembly and Mexico factories. The two are collected for 1.7 million sales of cars in the United States last year.
The United States is currently Free Trade Agreement with South KoreaIn the sense that there is no tariff collected on imported light compounds such as passenger cars.
Farley’s focus on fairness with customs tariffs (and of course, ensuring that his rivals face the same difficulties) may not matter Trump, given his priorities.
“Trump does not focus on Japan, as it targets the borders and the neighbors of his direct nation,” Japanese society president Joshua Walker wrote in the Japan newspaper, as he indicated before Car news. “Therefore, Japan is much better than many other countries.”
Even if the trade war has reached Canada and Mexico, Farley believes that Ford is in a better position than other competitors because it is the most focused on the United States (with the largest UAW work force) and adopting the US MARKS trucks.
