President Donald Trump agreed to a 30-day pause on 25% tariffs on Canada and Mexico on Monday, while a 10% tariff on China kicked in on Tuesday. The tariffs could inject chaos into auto supply chains, experts say. The auto industry accounts for 26% of imports from Mexico to the US, and 12% from Canada, UBS researchers estimated.

President Donald Trump’s proposed tariffs on Mexico and Canada could be devastating for the auto industry, according to Ford Motor Co.’s (F) CEO.

"Customers have shown that they will not pay any premium for these large EVs," Farley said in an earnings call.

While speaking on Ford’s fourth-quarter earnings call, Farley noted that brands like Toyota and Hyundai can import hundreds of thousands of vehicles from Japan and South Korea without any new tariffs. According to Farley, “we can’t just cherry-pick one place or the other because this is a bonanza for our import competitors.”

Ford Motor Co (NYSE: F) chief executive Jim Farley is concerned that President Trump’s planned tariffs could do more harm than good to the US automotive industry. Raising tariffs against China, Mexico,

Speaking during the earnings call, Ford CEO Jim Farley said hybrid trucks are a key growth area and give the automaker “pricing power” thanks to features such as Pro Power Onboard. The system turns pickups into mobile power stations that can generate electricity for job sites, camping or emergencies.