Ford CEO Jim Farley is calling for changes to North American trade rules that would give automakers producing more vehicles in the United States a competitive advantage over rivals that rely heavily on imports. His comments come as negotiations begin on a replacement for the current United States-Mexico-Canada Agreement (USMCA).
Speaking as trade discussions officially reopened, Farley argued that future policies should reward companies with larger domestic manufacturing footprints while making it more difficult for competitors to depend on imported vehicles from overseas markets.
The proposal follows the Trump administration’s decision not to extend the existing USMCA beyond its current framework, opening the door for new negotiations that could reshape automotive manufacturing and trade across North America.
While Farley’s remarks reflect Ford’s own manufacturing strategy, many other automakers and industry groups are urging policymakers to preserve a stable trilateral trade agreement with Canada and Mexico to avoid disrupting vehicle production and investment.
Ford Wants Domestic Production Rewarded
Farley told CNBC that the next trade agreement should create a more level playing field for manufacturers building the majority of their vehicles in the United States. He argued that companies investing heavily in domestic production should receive advantages under the revised rules.
At the same time, he suggested that automakers relying extensively on imported vehicles from countries such as Japan and South Korea should face greater obstacles under future trade policies. According to Farley, the objective is to improve competitiveness for manufacturers with significant U.S. production.
Ford Builds More Vehicles In The U.S. Than Any Rival
Ford says it assembled more than two million vehicles in the United States during 2025, the highest total of any automaker. The company also exported approximately 311,000 vehicles from U.S. factories to more than 60 international markets.
Although Ford still imports several models, including vehicles produced in Mexico, those imports represented about 17 percent of its U.S. sales last year. By comparison, industry data shows General Motors imported roughly 1.17 million vehicles, accounting for about 41 percent of its domestic sales, while Toyota imported more than 1.19 million vehicles, or approximately 47 percent of its U.S. volume.
Trade Talks Could Reshape The Auto Industry
The future of the USMCA has become a major issue for automakers operating across North America. Rather than extending the current agreement, the Trump administration has opted for annual reviews that could eventually lead to the pact expiring in 2036 unless a replacement is negotiated.
Because vehicle production is deeply integrated across the United States, Canada, and Mexico, any changes to trade rules could affect manufacturing strategies, supply chains, and future investment decisions throughout the industry.
Industry Groups Favor A Trilateral Agreement
Not every manufacturer shares Ford’s perspective on how the next agreement should be structured. A coalition representing automakers, suppliers and dealers has urged officials from all three countries to preserve a trilateral trade framework that maintains predictable rules for companies operating throughout North America.
The organizations argue that a stable agreement encourages long-term investment and supports employment across the automotive sector. As negotiations continue, manufacturers will be watching closely to see whether future policies prioritize domestic production, imported vehicles or a balance between the two.
Whatever shape the new agreement ultimately takes, it is likely to influence where automakers build vehicles and how they serve the U.S. market for years to come.