Ford CEO Jim Farley Warns USMCA Uncertainty Could Raise Car Costs

Ford CEO Jim Farley says USMCA trade uncertainty with Mexico and Canada could disrupt supply chains and drive car prices higher. Read the details.

Ford is warning that trade uncertainty surrounding the USMCA agreement between the United States, Mexico, and Canada could push vehicle prices even higher. CEO Jim Farley said the auto industry depends heavily on stable cross-border trade, and any disruption could quickly translate into rising costs.

Farley emphasized that Ford and its competitors operate deeply integrated supply chains across North America. Many components cross national borders multiple times before a finished vehicle is assembled. If tariffs or shifting trade rules interfere with that flow, automakers could face slower production and higher expenses.

According to Farley, the biggest issue is uncertainty. Vehicle programs and factory investments are planned years in advance, but trade policy can shift much faster. That forces manufacturers to consider costly adjustments such as duplicating sourcing, increasing inventory, or restructuring production strategies.

Farley linked the risk directly to affordability. If cross-border manufacturing becomes less predictable, costs will rise, and consumers could see even higher sticker prices. The warning comes as the industry continues to face scrutiny over why new vehicles have become so expensive.

The timing is significant, with the USMCA scheduled for a major review in 2026. That process could shape supply chain decisions and investment planning for the rest of the decade. Ford is signaling that the industry needs clarity not only on trade rules but also on the broader policy environment that influences pricing and long-term manufacturing strategy.

Market reaction has already been visible, with Ford shares dipping slightly after the latest comments. As the USMCA review approaches, the company’s message is clear: instability in North American trade could ripple through the entire automotive sector, and the impact may ultimately be felt most by everyday car buyers.