Ford Motor Co. is the latest automaker to
report disappointing earnings as the result of President Donald Trump’s trade policies.
Ford, which reported earnings Wednesday, said it expected tariffs to cost it a total of
$2 billion this year, including the impact of cost-cutting and other measures the company is taking in response.
Ford currently projects a $3 billion gross tariff hit in 2025, up
from a previous $2.5 billion estimate.
“Chief Financial Officer Sherry House said Ford raised the projection because duties on Mexico and Canada have remained higher for
longer than expected,” according to Reuters.
She also cited elevated levies on aluminum and steel. CEO Jim Farley added to the doom and gloom.
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“We make about 80% of our vehicles [in the U.S.], but we still
import parts from all over the world, and that’s the opportunity to work with the administration. And they are very committed to supporting companies like Ford that have committed to the U.S.
manufacturing base,” CEO Jim Farley told CNBC.
The automaker lost $36 million from April
through June, compared with a profit of $1.8 billion a year earlier, even as sales rose 5% to $50.2 billion. Farley told Bloomberg profits will fall as much as 36% this year due to tariffs.
“Tariffs imposed by President Trump have been a recurring theme as automakers have reported earnings this month,” notes The New York Times. “General Motors, Stellantis, Tesla, Mercedes-Benz and Volkswagen have all cited
tariffs as one of the main reasons their profits are falling.”
Tariffs trimmed $800 million from Ford profits during the second quarter, the company said.
“Ford imports just about 21% of the vehicles it sells in the US. In comparison, crosstown rival GM imports around 46%,” according to Electrek. “GM announced last week that the tariffs cost it an extra $1.1 billion in the second
quarter. For the full year, GM still expects a $4 billion to $5 billion impact.”
The company’s stock dropped more than 3% during after-hours trading.