American automaker Ford is taking a big hit on profits thanks to tariffs on goods needed to manufacture their vehicles.
Featured VideoPresident Donald Trump’s tariffs are yet again having a negative impact on Americans, as Ford announced an $800 million hit from tariffs alone this quarter. This marks the company’s first quarterly loss since 2023.
These numbers have also affected Ford’s upcoming projections. Their expected overall tariff cost for the year has been adjusted up to $3 billion, and their predicted adjusted earnings are coming in at around $6.5 to $7.5 billion—down roughly $1 billion from their projection earlier this year.
AdvertisementWhy is Ford losing money on tariffs?
Ford has previously sounded the whistle about how Trump’s tariffs would impact the auto industry. Back in February, CEO Jim Farley openly criticized the turmoil caused by the constant policy shifts and overall uncertainty about where tariffs and tax credits were headed.
“President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation. So far what we’re seeing is a lot of cost and a lot of chaos,” he said.
Farley also cautioned that some of Trump’s proposed policies would actually end up favoring foreign automakers, which many are still concerned is the direction in which things are headed.
AdvertisementDespite Ford manufacturing 80% of their vehicles in the U.S., the company still has to import parts from other countries. As they now have to pay hefty tariffs on a number of those parts, costs are going up.
Eventually, these costs may be passed down to American consumers.
Nobody who’s paid attention is surprised
As much as Trump likes to tout all the money his tariffs have raked in, anyone paying even the slightest bit of attention understands that money has come from the pockets of Americans. That they’re also hurting domestic production comes as no shock.
Advertisement AdvertisementSome MAGA folks like to claim this is a long-term strategy, but that doesn’t necessarily mean it makes sense.
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