Ford CEO, Jim Farley, has warned that competition from Chinese electric car manufacturers could threaten the U.S. auto industry. Despite Ford's commitment to manufacturing its vehicles in the US, Farley believes that China has enough capacity in China to cover all of the manufacturing and vehicle sales in the United States. He also highlighted the economic impact of this competition. While Ford cannot prevent a potential takeover, it has seen how quickly Chinese companies like BYD and others can take over a car market in Canada and Mexico. Despite Mexico's President Claudia Sheinbaum increasing tariffs on China (and all other countries without a trade agreement with Mexico) to 50, BYD dealers in the country did not worry. However, Ford is taking lessons from Chinese companies to improve its struggling electric brands. The company plans to reduce its EV production capacity by 35% in the next two years.