Ford CEO Jim Farley endorses renewed USMCA overhaul, calling it “critical” for competing against Japan and South Korea

Ford Motor Co. Chief Executive Jim Farley said the company supports a renewed overhaul of the U.S.-Mexico-Canada Agreement, framing USMCA as a critical element of how Ford competes in the North American market against major rivals from Japan and South Korea.

In comments reported by Yahoo Finance, Farley, a Michigan-based executive, argued that the trade deal matters not only for automakers with manufacturing footprints across the United States, Mexico, and Canada, but also for the broader competitive environment facing the industry. He characterized the agreement update as necessary to help Ford remain able to compete as international automakers push into the same markets with advanced products and manufacturing scale.

Ford’s position, as described in the report, ties the company’s outlook to the competitiveness outcomes that could result from renegotiating or updating USMCA terms. The emphasis was on whether the agreement can support Ford’s ability to sell and produce efficiently in North America rather than on a narrow set of domestic policy preferences.

The report did not provide additional specifics on what sections of USMCA Ford wants revised, such as changes related to auto rules-of-origin, labor or wage provisions, tariff schedules, or dispute processes. It also did not outline any formal legislative or negotiating targets Ford has requested from U.S. trade authorities.

Industry context is that trade arrangements can materially affect automakers’ costs and supply-chain decisions, especially when vehicles and components cross borders multiple times during manufacturing. For a company like Ford, which operates through integrated production networks across North America, the structure of rules within USMCA is often treated as a long-term planning input rather than a short-term lever.

The U.S. auto market has also seen heightened competitive pressure as Asian automakers expand product offerings and adjust pricing, while consumer demand shifts among powertrains. In that environment, trade agreement changes can affect whether production planning favors existing plants, new investment locations, or different sourcing strategies for parts.

What remains unclear from the report is the scope and timeline of Ford’s backing. Ford did not, in the Yahoo-reported remarks, specify whether it is calling for immediate changes, what negotiating posture it expects, or how it would measure success for the company if USMCA is updated. Investors and trade watchers will likely focus on whether later company statements connect Farley’s support to concrete tariff or content thresholds.

Going forward, attention will likely turn to any follow-on comments from Ford on specific USMCA provisions, and to signs of how the administration and trade negotiators intend to handle auto-related elements of the deal. Any details that indicate whether the update would tighten or loosen compliance requirements could become a focal point for suppliers and manufacturing planners.