TARIFF TRAUMA

In an era when most executives think those who remain silent and docile will reap the rewards, it was interesting that Ford CEO Jim Farley didn't mince words talking about President Trump's proposed tariffs.

Though Trump has talked about strengthening the U.S. auto industry, he flexed his muscle on Feb. 10 when he tattooed a 25% tariff on steel and aluminum imports, "without exceptions or exemptions," effective March 4.

He also pinned an additional 10% tariff on Chinese goods. That led Farley to tell investors at a Wolfe Research conference, that as far as the auto industry is concerned, "what we're seeing is a lot of cost and a lot of chaos.

"Let's be real honest: Long term, a 25% tariff across the Mexico and Canada borders would blow a hole in the U.S. industry that we've never seen"

The new tariffs, Farley said would give "free rein to South Korean, Japanese and European companies that are bringing 1.5 million to 2 million vehicles into the U.S. that wouldn't be subject to those Mexican and Canadian tariffs. It would be one of the biggest windfalls for those companies ever."