Ford CEO Jim Farley says tariffs and import bans will not permanently stop Chinese electric-vehicle makers from gaining global market share, telling industry leaders in Detroit that brands such as BYD could reach the United States within a decade despite current restrictions. He pointed to Europe, where he said it is already too late to blunt Chinese automakers' advance.
What Farley told the Automotive News Conference
Speaking at the 50th annual Automotive News Conference in Detroit on Sept. 29, 2026, Ford CEO Jim Farley said Europe no longer has a realistic chance of catching up with Chinese automakers after years of inaction, according to Yahoo Finance.
Farley also said he expects Chinese automakers to reach the United States within the next decade regardless of the tariffs and import restrictions currently in place, Yahoo Finance reported. Ford Executive Chair Bill Ford has separately said the company cannot "keep them out forever" and instead needs to "beat them at their own game," per the same report.
It's too late.
— Jim Farley, Ford CEO, describing Europe's position against Chinese automakers (Automotive News Conference, Sept. 29, 2026)
How big is China's lead in EV production
China produced nearly 62% of the 10.4 million electric vehicles built worldwide last year, compared with roughly 1 million vehicles - under 10% of the global total - made in the United States, according to PBS NewsHour.
Yahoo Finance reported that Chinese manufacturers, led by brands such as BYD and Geely, are projected to control about one-third of the global automotive market by 2030 as they expand across Russia, Southeast Asia, the Middle East and the Americas. Ford itself has partnered with Geely to share a manufacturing plant in Spain, the same report said.
Tariffs, Mexico and the rules-of-origin route
The United States raised tariffs on Chinese-made electric vehicles from 27.5% under the Trump administration to 102.5% in May 2024 under President Biden, who described Chinese competitive practices as "cheating," according to PBS NewsHour. Sen. Sherrod Brown, D-Ohio, said at the time that "we have seen the Chinese government dump highly subsidized goods into markets for the purpose of undermining domestic manufacturing," per the same report.
Under the U.S.-Mexico-Canada Agreement, vehicles assembled in Mexico can enter the U.S. duty-free or at a 2.5% tariff if at least 75% of their content is North American and at least 40% comes from facilities paying $16 or more per hour, PBS NewsHour reported. BYD has considered building a Mexican factory, though the company said at the time it would be "only for the Mexican market," according to the same report.
The Third Way policy memo reported that Chinese-made vehicles already account for more than 70% of Mexico's EV sales and over 20% of all vehicle sales there. Mexico announced it would raise tariffs on Chinese-made cars to 50% starting Jan. 1, 2026, a move the memo said "may come as too little too late," while Beijing has threatened retaliation over what it calls unfair trade barriers.
Tariffs and prices in the US-Mexico-China EV dispute
Measure
Figure
Source
U.S. tariff on Chinese EVs (since May 2024)
102.5%, up from 27.5%
PBS NewsHour
Mexico tariff on Chinese vehicles (from Jan. 1, 2026)
50%
Third Way
USMCA entry for Mexico-assembled vehicles meeting content rules
Duty-free or 2.5%
PBS NewsHour
Average U.S. EV price
About $55,000
PBS NewsHour
BYD Seagull EV price in China
About $12,000
PBS NewsHour
Why the competitiveness gap worries US automakers
The Third Way memo said Chinese automakers have benefited from an estimated $230 billion in state subsidies between 2009 and 2023. Ford Chief Financial Officer John Lawler has said Chinese developers can bring a new vehicle to market in about 24 months, compared with roughly three to five years for U.S. automakers, PBS NewsHour reported.
What comes next
With Mexico's higher tariff set to take effect at the start of 2026 and Beijing warning of retaliation, the Third Way memo said it remains unclear whether the move closes the Mexico route quickly enough. Farley, for his part, has framed the choice facing U.S. policymakers as one Europe no longer has: deciding now, rather than later, how to respond to Chinese automakers' global expansion, according to Yahoo Finance.
Questions
What did Ford CEO Jim Farley say about import bans on Chinese EVs?
At the Sept. 29, 2026 Automotive News Conference in Detroit, Farley said he expects Chinese automakers to enter the U.S. market within the next decade regardless of current tariffs and import restrictions, according to Yahoo Finance.
Why does Farley say it is 'too late' for Europe?
Farley said Europe failed to respond to Chinese competition in time and now has to deal with a market Chinese brands have already captured, per Yahoo Finance.
How could Chinese automakers reach the US market through Mexico?
Under USMCA rules of origin, vehicles assembled in Mexico with at least 75% North American content, including a minimum share from workers paid $16 or more an hour, can enter the U.S. duty-free or at a 2.5% tariff, far below the 102.5% tariff applied to vehicles imported directly from China, PBS NewsHour reported.
How large is China's share of global EV production?
China produced nearly 62% of the 10.4 million EVs made worldwide last year, versus about 1 million vehicles - under 10% of the total - made in the United States, according to PBS NewsHour.
How is Ford responding to Chinese EV competition?
Ford has partnered with Chinese automaker Geely to share a manufacturing plant in Spain, while Executive Chair Bill Ford has said Ford cannot keep Chinese rivals out forever and must compete directly, per Yahoo Finance.
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