Ford CEO wants level playing field with Toyota, GM imports as USMCA trade talks reopen

Ford's chief executive is pressing U.S. trade officials to close the gap between domestic manufacturers and foreign-brand rivals as talks over the North American trade pact resume. Jim Farley has argued that companies building the bulk of their U.S.-sold vehicles overseas, including Toyota and General Motors, should face the same conditions as automakers rooted primarily in American plants.

Farley's case leans heavily on Ford's own production record. The company says it built more than two million vehicles inside the United States over the past year, a total it describes as the highest output of any automaker operating domestically. Of those vehicles, roughly 311,000 were shipped abroad, underscoring that Ford's U.S. factories serve export markets as well as American buyers.

The renewed push comes as officials from the United States, Mexico and Canada revisit the terms of the trade agreement that succeeded NAFTA. That pact includes a built-in review mechanism requiring the three governments to periodically reassess whether the deal is still serving their economies, and this cycle has become a venue for automakers to relitigate longstanding grievances over where cars and parts are actually made.

Ford's argument centers on a structural contrast within the industry: while it manufactures the large majority of what it sells in the U.S. on American soil, competitors such as Toyota and GM rely more heavily on vehicles assembled outside the country, whether imported directly from Asia or produced at plants in Mexico and Canada before crossing the border. Farley contends that trade rules should account for that difference rather than treating all "Detroit" and foreign-headquartered brands alike.

The stakes extend beyond corporate rivalry. Tighter rules of origin or new import costs could reshape supply chains that automakers have spent decades building across North America, potentially raising vehicle prices or forcing manufacturers to shift production. Labor unions and manufacturing-heavy states have also watched the USMCA review closely, since assembly jobs and supplier contracts often hinge on where finished vehicles and components are classified as originating.

Not every voice in the industry shares Ford's framing. Automakers with more globalized production networks have generally favored preserving flexibility in cross-border manufacturing, arguing that integrated supply chains lower costs for consumers and allow companies to adjust output where it's most efficient. Trade analysts have also cautioned that singling out specific competitors risks politicizing what is meant to be a broader economic review rather than a dispute between individual companies.

No changes to the agreement have been finalized, and any revisions would require agreement among all three governments involved in the pact. For now, Farley's comments serve as an early marker in negotiations that are expected to continue in the coming months, with automakers on all sides expected to lobby for terms that favor their existing manufacturing footprints.

Source: CNBC Business