The Trump administration issued a stern warning to Ford Motor Company on Tuesday, signaling a potential collision course over the automaker’s deepening ties with Chinese firms. In a pointed letter to Ford CEO Jim Farley, Transportation Secretary Sean Duffy expressed “profound concern” regarding the company’s strategic reliance on foreign entities, arguing that such partnerships threaten the integrity of the U.S. automotive industry.
The letter marks a significant escalation in tensions between the White House and one of Detroit’s “Big Three.” Secretary Duffy explicitly questioned Ford’s trajectory, citing “American national automotive manufacturing integrity, supply chain exposure, and reliance on technologies of foreign adversaries” as primary areas of distress.
At the heart of the administration’s grievance is Ford’s ongoing collaboration with Contemporary Amperex Technology Co., or CATL. The licensing agreement, originally established in 2023, allows Ford to utilize the Chinese giant’s battery technology—specifically for the production of lithium iron phosphate (LFP) batteries. This deal has drawn renewed scrutiny as the White House intensifies its focus on decoupling critical supply chains from Chinese influence. Duffy’s letter also took aim at a framework proposed earlier this year at the Detroit Auto Show, which allegedly aimed to facilitate Chinese joint ventures on U.S. soil.
“While DOT recognizes the intense competitive pressures of the global market, the Company’s recent strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state-backed enterprises,” Duffy wrote.
The criticism places CEO Jim Farley in a precarious position. Farley has frequently navigated the complex balance of praising the current administration’s pro-manufacturing agenda while simultaneously acknowledging the competitive edge held by Chinese electric vehicle manufacturers. However, the federal government’s latest stance suggests that this middle ground is narrowing.
The administration’s intervention comes as Ford expands the application of its Chinese-licensed technology to include energy storage systems—a sector increasingly viewed as a pillar of national security. By urging Farley to reconsider these partnerships, the Trump administration is pushing Ford to pivot toward domestic supply chains or those based in allied nations.
“The Company needs to reflect on these concerns and national necessities,” Duffy stated, calling on Ford to “adopt reasonable strategies that prioritize American workers, utilize allied supply chains, and promote the self-reliance and integrity of the domestic automotive industry.”
Ford, which maintains its status as the leading producer of automobiles in the United States, did not immediately provide a comment regarding the letter or the administration’s demands. Industry analysts suggest that if the White House proceeds with regulatory or policy changes regarding Chinese battery technology, Ford may be forced to initiate a costly and complex restructuring of its EV production strategy to remain in compliance with Washington’s shifting national security standards.
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