Ford eyes level playing field with Toyota and GM imports under new USMCA

DETROIT — As negotiations on the North American CUSMA trade deal officially resume, Ford engine CEO Jim Farley is clear on what the automaker wants in the new negotiations: a more level playing field.

He told CNBC he wants automakers such as Ford, which largely produce their vehicles domestically, to be rewarded under the deal. Along with this, Farley said other automakers, such as General engines And Toyota engine — which can produce here but also rely heavily on imported vehicles should be subject to tougher penalties.

“It is imperative that any new agreement makes it easier, not harder, to compete with U.S. manufacturers who import from Japan, South Korea, and with global competitors who import from those countries,” Farley told CNBC in a phone interview Wednesday. “That’s the key for us.”

Producing in these countries is generally less expensive due to labor costs.

GM and Toyota are respectively No. 1 and No. 2 in sales in the United States, while also being the two largest importers of vehicles in 2025.

GM imported 1.17 million vehicles, or 41% of its U.S. sales, while Toyota imported more than 1.19 million units, or 47% of its domestic sales, according to industry data.

Hyundai Motor, which plans to roughly double the amount of its domestic sales produced in the United States to 80% by 2030, was the largest importer of vehicles from South Korea, followed by GM.

Ford, meanwhile, says it assembled more than 2 million vehicles in the United States last year, more than any other automaker, including 311,000 units for export to more than 60 international markets. It imported 378,000 vehicles, or 17%, of its 2.2 million sales last year.

“Ford is a leader in American auto production with the most vehicles built in the United States, but more importantly, we import very few, and we export the most, and we have the most UAWs. [union] “So we are very proud, especially of the relationship between what we build here and what we import.”

Farley’s comments come as the Trump administration has decided not to renew its trilateral trade agreement with Canada and Mexico, choosing instead to conduct annual reviews of the treaty that could eventually lead to the agreement’s end by 2036.

The auto industry accounted for about 18% of America’s trade with its neighboring countries last year, according to industry data, making it one of the key sectors in the discussions. Automakers and others following the negotiations worry that reopening the deal could create additional trade uncertainty that would lead to lower investment and fewer jobs.

A consortium of U.S. trade groups representing most automakers, dealers and suppliers expressed support Wednesday for a trilateral agreement like the one the countries currently have.

“We urge the leaders of the United States, Canada and Mexico to quickly reach consensus on an extension of the USMCA that preserves the existing trilateral partnership, returns to preferential treatment for eligible products, and maintains the stability and predictability that has helped the industry thrive over the past six years,” they said in a statement.