{"id":10365,"date":"2026-07-03T07:41:35","date_gmt":"2026-07-03T07:41:35","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=10365"},"modified":"2026-07-03T07:41:35","modified_gmt":"2026-07-03T07:41:35","slug":"ford-ceo-makes-usmca-demands-clear-amid-negotiations","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=10365","title":{"rendered":"Ford CEO makes USMCA demands clear amid negotiations"},"content":{"rendered":"

<\/p>\n

Negotiators from the U.S., Canada, and Mexico are meeting to discuss the USMCA trilateral trade deal that went into effect on July 2020, during the first Donald Trump administration.<\/p>\n

When it was signed, the pact had a mandatory six-year joint review clause. <\/p>\n

But while politicians and bureaucrats will be the ones participating in the negotiations, the auto industry is one of the biggest stakeholders in these talks, and executives from the biggest U.S. automakers are making their positions publicly clear.<\/p>\n

The auto industry is the largest component of total trade in North America, accounting for 22% of USMCA trade and employing 9.7 million people directly and another 11 million throughout the\u00a0supply chain\u00a0just in the U.S.<\/p>\n

Ford CEO Jim Farley wants the USMCA to be more fair<\/h2>\n

Ford CEO Jim Farley has been outspoken about what his company wants from the USMCA negotiations for weeks. <\/p>\n

At the international meeting, he said that he wants automakers that produce most of their vehicles domestically, like Ford, to be rewarded under the new deal while competitors that produce domestically, but also import a large portion of their vehicles, like Toyota and GM, should face stiffer penalties.<\/p>\n

\u201cIt\u2019s imperative that any new agreement makes it easier, not harder, to compete with U.S. makers who import from Japan, South Korea and global competitors that import from those locations. That’s the key for us,\u201d Farley told CNBC Wednesday.<\/p>\n

Related: Ford recognized for addressing stubborn quality issue<\/strong><\/p>\n

GM, which led the U.S. in auto sales in 2025, imported 1.17 million vehicles, or 41% of its U.S. sales. Toyota imported more than 1.19 million units, or 47% of its domestic sales, CNBC reported. <\/p>\n

Ford, on the other hand, assembled more than 2 million vehicles in the U.S. last year, more than any other OEM, and imported just 378,000, or 17% of the 2.2 million it sold in the U.S.<\/p>\n

\u201cFord\u2019s a leader of U.S. auto production with the most U.S.-built vehicles but, more importantly, we import very few, and we export the most, and we have the most UAW [union] workers here,\u201d Farley said. \u201cSo we\u2019re very proud, especially of the ratio between what we build here and what we import.\u201d<\/p>\n

Last year\u2019s tariffs added $41 billion to the cost of vehicles and parts,\u00a0according to JPMorgan. Those costs amounted to an increase of about $2,580 per vehicle, or about 5.8% of the average retail price.<\/p>\n

\u201cReally, our priority is to be able to import parts, build as much as we can in our country, but import parts to make the vehicles as affordable as possible,\u201d Farley told another news outlet recently. <\/p>\n

\u201cSo what we\u2019ll be looking for in the new negotiation is really making sure that if a vehicle is imported from Mexico and Canada, it is done on a level playing field,\u201d he said. \u201cSo if you\u2019re not compliant with USMCA, it should be very expensive to do that. If a company decides not to be compliant with the legislation, then it should be a lot more expensive.\u201d<\/p>\n

\n

Ford imported fewer vehicles than its rivals last year by a wide margin. <\/p>\n

General&lowbar;4530 &sol; Getty Images<\/p>\n<\/figcaption><\/figure>\n

UAW continues opposition to USMCA<\/h2>\n

With more than a fifth of the trade under the USMCA trilateral trade agreement coming from the automotive industry, the United Auto Workers union and its 400,000 active members are among the biggest stakeholders in these negotiations.<\/p>\n

UAW President Shawn Fain was wearing a \u201cKill NAFTA\u201d T-shirt during a video call last month, according to the\u00a0Wall Street Journal, when he made his union\u2019s opposition to the agreement clear.<\/p>\n

\u201cWhere it didn\u2019t eliminate jobs entirely, it slashed wages and benefits,\u201d Fain said of the USMCA. \u201cThere is no future for the U.S. working class that doesn\u2019t address the free-trade disaster.\u201d<\/p>\n

More Automotive:<\/strong><\/p>\n

    \n
  • The U.S. may never sell 17.6 million cars again<\/strong><\/li>\n
  • A U.S.-built EV brand just got banned from America<\/strong><\/li>\n
  • Ford is betting a new battery strategy will make EVs profitable<\/strong><\/li>\n<\/ul>\n

    The UAW believes the USMCA should completely overhaul the requirement that 40% to 45% of the auto content must be made by workers earning at least $16 per hour. That requirement guarantees that Mexican auto workers receive pay equal to that of their U.S. counterparts.<\/p>\n

    Fain says that scrapping that requirement would help curb job offshoring and improve conditions for Mexican workers.<\/p>\n

    Fain also wants a revised USMCA to toughen penalties on companies that violate workers\u2019 rights and to set quotas requiring companies to manufacture a larger share of vehicles and components in the country where they are sold.<\/p>\n

    Meanwhile, Farley says he has been in contact with the UAW and appreciates their point of view.<\/p>\n

    \u201cThe good thing is Ford is respected. We\u2019ve earned that respect,\u201d Farley said.<\/p>\n

    Related: Leading auto CEO lays out USMCA strategy ahead of July deadline<\/strong><\/p>\n

    #Ford #CEO #USMCA #demands #clear #negotiations<\/p>\n","protected":false},"excerpt":{"rendered":"

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