DETROIT – Ford Motor Company CEO Jim Farley emphasized the importance of a North American trade deal for the automaker and the broader U.S. automotive industry, days after former President Donald Trump called such agreements “irrelevant.”

“We really see Canada, Mexico, and the U.S. as an integrated manufacturing system. And that’s how we’re going to approach this negotiation. Very critical for us, but we need revisions,” Farley said during the Detroit Auto Show on Tuesday.

The United States-Mexico-Canada Agreement (USMCA) is up for review this year, with officials deciding whether to let it expire or negotiate a new agreement. The deal governs trade and tariffs across the three countries and is central to supply chains for the auto sector.

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Regulatory Uncertainty and Tariffs

Former President Trump last year imposed 25% tariffs on autos imported from Canada and Mexico, although some workarounds reduced the levies. Speaking at a Ford plant, Trump downplayed the trade deal’s significance:

“We could have it or not, it wouldn’t matter to me.”

Ford executive chair Bill Ford highlighted the challenges caused by fluctuating regulations, changing tariffs, and inconsistent emissions rules:

“It’s a game we’ve been in my whole career. If I had a perfect world, which I never will, we’d have some certainty in regulations.”

Farley echoed the need for predictable trade rules, noting the impact of uncertainty on manufacturing planning and supply chain operations.

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Affordability Concerns and Vehicle Pricing

Ford leaders also addressed consumer affordability, which has become a key issue as average new vehicle transaction prices approach $50,000.

“Affordability is a big issue, and it’s one we talk about a lot internally,” Bill Ford said. He highlighted Ford’s plan to launch a $30,000 electric pickup in 2027, signaling efforts to expand entry-level options.

Farley stressed that consumer demand and pricing will be closely monitored throughout 2026:

“We should all be very careful about consumer demand,” he said.

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Key Takeaways

• USMCA review: Trade deal with Mexico and Canada is up for review in 2026.
• Ford’s stance: Farley and Ford executives call it “critical” for integrated North American auto manufacturing.
• Affordability focus: Plans include lower-cost electric vehicles and attention to market pricing.
• Regulatory challenges: Uncertainty around tariffs, emissions, and trade policies continues to affect planning.