Ford CEO backs a USMCA rewrite aimed at keeping U.S. auto jobs competitive with Asian rivals

Ford is throwing its support behind changes to the U.S.-Mexico-Canada Agreement (USMCA), with CEO Jim Farley saying the pact needs to be rewritten to help American automakers remain competitive against Japanese and South Korean brands.

In a public statement carried by Yahoo Finance on Aug. 3, Farley argued that the stakes for the industry are high and that revisions to USMCA are essential for Ford and other U.S. manufacturers. His comments tie trade terms directly to cost competitiveness and market access, themes that have repeatedly surfaced in recent years as automakers face intensifying competition from Asia.

Farley framed the USMCA conversation as a practical business requirement rather than a purely political one. The core of his argument, as described in the report, is that changes to the trade agreement are necessary for U.S. automakers to stay competitive with Asian automakers operating in global supply chains and selling into North American markets.

USMCA, which governs trade rules among the United States, Mexico, and Canada, has been a central reference point for manufacturers because it sets requirements that affect where vehicles and parts are produced, as well as how easily companies can move goods across borders. For automakers, those rules matter not only for compliance costs, but also for the design of production networks, sourcing decisions, and pricing strategies.

Ford’s backing of a rewrite indicates that the company sees trade policy as a lever that can influence industrial outcomes such as employment levels in auto manufacturing and the competitiveness of U.S.-based production. The report also places Ford’s position in the context of broader industry concerns about competition from automakers in Japan and South Korea.

The Yahoo Finance post did not provide details in the information available here about what specific USMCA provisions Farley wants changed, what timelines are being discussed, or whether Ford is advocating particular language on content rules, tariffs, or enforcement. It also did not specify whether Farley’s comments were tied to a concrete legislative proposal or a formal negotiating position.

Still, the intervention underscores how major automakers are approaching trade discussions as part of their competitive strategy. With Japanese and South Korean brands continuing to pressure the market through pricing, product mix, and scale, U.S. manufacturers are seeking policy adjustments that can help them compete on comparable terms.