Ford CEO Jim Farley says recent tariffs policy changes are shifting the auto industry into regional blocs and raising costs for American automakers.

In April, the Trump administration had increased tariffs on automobiles exported from Japan to 27.5% from 2.5%. This rate is brought down to 15% in a deal recently announced after more than three months of negotiations, with revised "reciprocal" duties taking effect next Thursday. But the burden on Japanese automakers remains heavy.