Ford Motor Company has warned that US President Donald Trump’s tariffs are expected to cost the company about $2 billion this year, a significant increase from previous estimates. The news comes as major American firms face challenges in coping with the impact of Trump’s trade policies on global supply chains.
The company’s finance chief, Sherry House, attributed the rise in tariff costs to higher levies on Mexico and Canada, where Ford has facilities, as well as US tariffs on imported aluminium and steel. This contrasts with some competitors, such as General Motors and Volkswagen, which have reported significantly higher tariff-related losses.
Ford is engaged in regular communication with the White House to secure lower tariffs, particularly for vehicle parts. CEO Jim Farley stated that negotiations with the administration could yield benefits, but warned of uncertainties.
The announcement follows Trump’s imposition of tariffs on most goods, including cars and car parts, as well as key materials used to manufacture them. The aim is to encourage companies in the US and abroad to manufacture products domestically.
Shares in Ford fell by 1.5% following the earnings announcement, highlighting the uncertainty surrounding Trump’s trade policies for major American firms like Ford.
Source: https://www.bbc.com/news/articles/cn47v5gj1nvo