WASHINGTON — An increasingly outspoken Ford Motor Co. is seeking tariff relief from the Trump administration after the White House reached trade agreements this past week with European and Asian trade partners but not Mexico and Canada.

The United States' neighbors play a crucial role in the automotive supply chain. But Ford and other select voices for Michigan's signature industry are decrying continued uncertainty over regional trade relationships and claiming they now face a competitive disadvantage compared to overseas exporters.

The F-150 maker has spent several days making the case to the public — and the White House — that the company is being penalized for its highly North American manufacturing process and described the situation as "urgent."

The automaker has expressed optimism that President Donald Trump will address its concerns, even as political tensions with Canada mount and some in Trump's orbit have told Detroit to quit complaining. The outcry also comes as new data from across the United States suggest that the president's use of tariffs as an attempt to boost domestic business and reshore jobs could be backfiring in Michigan and elsewhere.

Ford CEO Jim Farley said in a radio interview with Bloomberg News that company representatives continue to have conversations "every day, every week, every month" with the Trump administration on several topics. He added that the administration is "very committed to minimizing this disadvantage that we have making 80% of our vehicles in the U.S."

The White House did not immediately respond to a request for comment on its conversations with Ford.

Currently, there are 25% Trump-imposed taxes on goods from Mexico and Canada, though the president has vowed to hike the Canadian rate to 35% next week. There are also blanket 25% tariffs globally on vehicles and auto parts, though key exceptions apply.

Ford is upset that the Mexico and Canada rates are higher than the 15% tariff rates announced for major automotive nations like Japan, South Korea and Germany, though the details of Trump's complicated tariff structure for North American autos make it difficult to compare those top-line numbers.

There is a partial exemption for vehicles that comply with the United States-Mexico-Canada free trade agreement. For USMCA-compliant vehicles brought stateside, U.S. content is exempt, while Mexican and Canadian content is still taxed at 25%. For USMCA-compliant auto parts shipped separately, there is a full exemption.

A Detroit News analysis found that those policies have so far — before recent trade deals — resulted in lower duties on vehicles and auto parts from Canada and Mexico than other countries.

The duty rate paid on motor vehicles imported from Mexico in May was 9.7% and from Canada was less than 0.1%, according to the latest data available from the U.S. Commerce Department through the International Trade Commission's DataWeb. For parts, it was 7% and 6.5%, respectively.

By contrast, Japan paid a tax rate of 29% for vehicles and 18% for parts. The European Union paid similar rates of 27% for vehicles and 15% for parts, according to The News' analysis.

Ford, however, has said the latest trade deals could undermine Trump's goal of boosting American manufacturing by tilting cost advantages back toward overseas producers.

Republican Ohio U.S. Sen. Bernie Moreno, a fierce Trump ally, said any automakers complaining about the current tariff arrangement is "quadruple baloney."

The freshman senator, who amassed a personal fortune running and selling car dealerships, said companies should instead be grateful to the administration for several major regulatory rollbacks over the past six months. He also pointed to certain tariff exemptions and rebates to help offset costs.

"By design, they get a great deal," he told The Detroit News in a Capitol Hill interview. "So you know what it is? There's people that if you give them $10, they complain that you didn't give them two fives."

Ford splits from the pack

Ford and automakers with significant U.S. operations have collectively pushed for fewer trade barriers on Mexico and Canada, which Trump said will be subject to 35% import taxes on some goods beginning next week. But companies with higher overseas import volumes, like General Motors Co., have taken different positions on other trade deals.

Ford explained its disadvantage in a Thursday statement: "15% tariffs on vehicles is simply not a strong enough incentive for competitors to move production to the U.S.," the company said, referring to the new announced tariff rates on autos from Japan, South Korea and the European Union.

The statement continued: "Japan and South Korea have real advantages in labor costs, materials and currency. Meanwhile, Ford is facing billions due to multiple tariffs on auto parts, steel, aluminum and more that increase our costs of building in America. We are committed to working with the administration to get this right. Our goals are completely aligned, and we have had constructive engagement, but we have urgent work to do to protect our domestic industry.​”

The company, in conversations with the White House, has tried to walk a fine line between pleading its case and criticizing a president known to prioritize loyalty.

Ford and automakers with significant U.S. operations have pushed for fewer trade barriers on Mexico and Canada, though companies with higher overseas import volumes have taken different positions on other trade deals.

Detroit-based GM, for example, imported about 15% of its U.S.-sold vehicles from South Korea last year, including popular models like the Chevrolet Trax.

"GM appreciates that negotiators have reached an agreement on trade between the US and South Korea," company spokesperson Elizabeth Winter said Thursday after Trump announced an agreement between the two countries.

She added: "GM's long-standing operations in Korea produce high-quality crossovers that complement our U.S. vehicles, strengthening GM’s global competitiveness and benefitting American customers and our US operations. We are reviewing the impact of the new trade deal, and at the same time, investing in products and technology that set us apart from competitors and strengthen our financial position."

Jeep-maker Stellantis NV has been quiet on the latest developments. The company has declined to comment on the EU and South Korea trade deals and Trump's threat to raise tariff rates on Canada.

As recently as last week, the Detroit Three were united in speaking out against a trade deal with Japan that they said would disadvantage North American production, but their unified front has split for now over divided business interests.

Other views from Michigan, Canada

Glenn Stevens, executive director of MichAuto, the automotive arm of the Detroit Regional Chamber, said continued uncertainty over trade deals with Canada and Mexico is causing widespread harm across Michigan's auto industry.

"With prolonged tariff negotiations, our economic uncertainty persists. This is extraordinarily disruptive to Michigan’s most important industries — capital-intensive manufacturing and automotive companies — making it impossible to plan and expand, which impacts our employment and economic base. It is also damaging our automotive companies' ability to innovate and compete against global competition," he said in a statement.

Stevens noted that Michigan's manufacturing-heavy economy, which relies on close ties with Mexico and Canada, puts the state at "greater economic risk than the rest of the nation."

Others in Michigan said businesses, no longer able to pause decisions on long-term planning or hiring, have started to make moves despite tariff uncertainty.

"People are just getting used to the uncertainty, and they're starting to make some decisions," said John Walsh, CEO of the Michigan Manufacturing Association. "A company might hire or select a supplier that's domestic. They were trying to hold off, but now they've got to select one that's here. That's good news."

"I'm not going to tell you anybody's super euphoric or happy, but the EU trade deal did result in some input from our members that they were feeling more confident," he added in a phone interview.

Patrick Curry, president of Fullerton Tool Company in Saginaw, said the last few months have been strong for his business and have allowed him to capture greater market share against foreign competitors. His company makes custom tools for manufacturers to form parts and components in several industries, including automotive and aerospace.

"People got to relax and let things play out like they have been," he said in a phone interview. "We got a great deal with the EU, good deals happening left and right, and they're starting to come to fruition. Give it some time, let things play out and see what happens."

Across Michigan's international border, Canadian automotive union leader Lana Payne said the Trump tariffs — even without the elevated 35% rate — have already hurt workers and businesses in Ontario. All of the Detroit Three automakers have facilities in the province.

"Anyone working in auto assembly or auto parts have been feeling the anxiety of this, but they also understand where this is headed," the president of the Unifor general trade union added. "This is not just going to hurt Canadian auto workers. It will also hurt U.S. auto workers."

She suggested that Friday's weak monthly jobs report in the United States was a sign that months of Trump tariffs and threats are starting to show up in the economy.

"The longer they're in place, the worse and more damage they cause," Payne said. If that's the case, she predicted worsening economic conditions could help Canada in trade talks with the Trump administration.

"Even though the pain is very high right now, I believe that there is going to be a time when the leverage will be greater," Payne said. "We know leverage. We know bullies. We know how to deal with complicated and intense moments like this."

(Staff Writer Breana Noble contributed.)

©2025 www.detroitnews.com. Visit at detroitnews.com. Distributed by Tribune Content Agency, LLC.