Trump tariffs to cost Ford $2B this year
What's the story
Ford, one of the world's leading automobile manufacturers, has revealed that US President Donald Trump's tariffs will cost the company around $2 billion this year. The estimate is higher than initially expected and comes despite Ford's strategy of manufacturing most of its vehicles in the US. The company said it had already paid an extra $800 million in duties during the three months ending June.
EV impact
Discontinuation of EV program also hits Ford
Along with the tariff-related costs, Ford has also suffered losses from the discontinuation of an electric vehicle (EV) program. The company's finance chief, Sherry House, said they had revised their forecast for tariff costs on its business due to prolonged higher levies on Mexico and Canada, where it has plants. She also cited US tariffs on imported aluminum and steel as contributing factors.
Tariff talks
Talks with White House over tariff reductions
Ford's CEO Jim Farley has emphasized that the company is in constant communication with the White House to negotiate lower tariffs, especially on auto parts. "We see there's a lot of upside depending on how the negotiation goes with the administration," he said. This comes as other car manufacturers have also reported significant losses due to Trump's tariffs, including General Motors (over $1 billion) and Volkswagen ($1.5 billion).