Ford Says Metal Tariffs Have Already Cost Company $1 Billion

Industry News

"If it goes on longer, there will be more damage."

Ford Motor Company has had a rocky relationship with President Donald Trump. Back in 2017, after Trump threatened to impose tariffs on vehicles built in Mexico, Ford canceled plans to build a $1.6 billion factory there. Fast forward to today, and Ford is currently facing tariffs on imported steel and aluminum set by the Trump Administration.

In an interview with Bloomberg, Ford CEO Jim Hackett said, "the metals tariffs took about $1 billion in profit from us and the irony is we source most of that in the U.S. today anyways." Hackett also warned that the administration should settle the trade disputes quickly or it could cause "more damage."

Ford and other global automakers have been highly opposed to the use of tariffs. Jim Farley, Ford's president of global markets, even described the tariffs as a "significant headwind for us." Ford had initially planned to import the Chinese-built Focus Active to the US as the only non-SUV or crossover in the lineup aside from the Mustang but decided it would be too costly due to the tariffs.

Trump took this as a victory, going on Twitter to proclaim “Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs. This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!"

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Unfortunately, Ford's decision not to import the Chinese-built car wasn't replaced by a new plan to build it in the U.S. Instead, the Focus Active just won't be sold in the US at all, marking the complete end of all Ford sedans and hatchbacks in the U.S. market.

Last year, Ford reported a net income of $7.6 billion, but analysts estimate the company will see a 29% drop in profits this year. Clearly, these tariffs, which were meant to help American companies, aren't helping Ford.

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