DETROIT — The tariffs imposed by President Donald Trump, along with proposed tariffs, are creating “chaos” within the U.S. automotive sector, as stated by Ford Motor CEO Jim Farley.

During his remarks, Farley highlighted the implications of the 25% tariffs on steel and aluminum, along with the anticipated imposition of similar tariffs on imports from Mexico and Canada, indicating they bring “significant costs and a lot of disorder” to the industry.

“This is the current landscape we are navigating,” Farley said on Tuesday at the Wolfe Research investment conference.

Farley and newly appointed Ford CFO Sherry House noted that most of the company’s steel and aluminum are sourced domestically. However, certain suppliers procure materials internationally, which could affect overall expenses.

Farley expressed particular apprehension about possible tariffs on goods entering from Mexico and Canada, stating that a 25% tariff set to take effect as early as March 1 could be “devastating,” potentially creating a substantial gap in the U.S. automotive industry that would be unprecedented.