Amidst the renegotiation of the USMCA trade agreement, Ford CEO Jim Farley is advocating for a level playing field, urging for domestic manufacturers to be prioritized and for competitors heavily reliant on imports to face penalties.

Speaking with CNBC, Farley argued that automakers primarily producing their vehicles domestically, such as Ford, should be rewarded. Conversely, brands that depend on imported vehicles should face penalties or trade barriers.

In 2025, Ford assembled over 2 million vehicles in the US, leading the nation's automotive industry. Of these, 311,000 units were exported to more than 60 international markets.

Bronco models at a dealership in the US. Photo: Bill Brown Ford

Bronco models at a dealership in the US. Photo: Bill Brown Ford

As negotiations to amend the US-Mexico-Canada Agreement (USMCA) officially reopen, the Ford CEO's objective is clear: to establish a fairer competitive environment. Farley seeks a new agreement that benefits domestic manufacturers like Ford. He also proposes that rivals, even those with US factories but still largely dependent on imported vehicles—such as General Motors (GM) and Toyota—should be subject to stricter measures and sanctions.

"The core requirement is that the new agreement must make it easier, not harder, for US manufacturers to compete against rivals importing vehicles from Japan, South Korea, or other global logistics hubs," the Ford CEO emphasized.

Vehicle production in Asian countries often incurs significantly lower costs due to labor price advantages. Currently, GM and Toyota are the two leading automakers by sales in the US market, and they were also the two largest vehicle importers in 2025.

Specifically, GM imported 1.17 million vehicles, making up 41% of its US sales. Toyota, meanwhile, imported over 1.19 million units, equivalent to 47% of its domestic sales.

Hyundai, which plans to double its US-produced vehicle ratio to 80% by 2030, is currently the largest importer of vehicles from South Korea into the US, followed closely by GM.

In contrast, Ford imported only 378,000 vehicles in 2025, representing just 17% of its total 2.2 million units sold.

The Ford CEO's statements follow the Trump administration's decision not to extend the trilateral agreement with Canada and Mexico. Instead, the US opted for an annual review of the treaty, which could lead to its complete termination by 2036.

The automotive industry accounted for approximately 18% of the US's total trade with its neighboring countries in 2025, making it a central focus of the negotiations. Many automakers and observers are concerned that revisiting the USMCA's terms could cause trade instability, reduce investment flows, and impact employment.