Automotive industry giant Ford said tariffs cost about $20 billion (£1.5 billion) this year, and despite most cars being built in the U.S., it is still more than previously expected.
The company said it had paid $800 million in responsibilities as of the three months to June. It also suffered losses related to cutting electric vehicle plans.
This is the latest sign of the impact of U.S. President Donald Trump on tariffs on major U.S. companies, and the challenges he is trying to reshape global supply chains.
However, Ford’s tariffs are less affected than some competitors, because its manufacturing industry is mostly in the United States.
Ford finance chief Sherry House said the company has raised its forecast for tariffs on its business as taxes are imposed on owning facilities in Mexico and Canada, with higher times than expected.
She also pointed out our tariffs on imported aluminum and steel.
Last week, rival automaker General Motors said tariffs had exceeded $100 million, while Volkswagen charges $1.5 billion.
Ford CEO Jim Farley said the company is regularly in contact with the White House as it tries to ensure lower tariffs, especially on vehicle parts.
“We see a lot of benefits based on how the government negotiates,” he said.
Trump has raised the responsibility for most commodities, with special tariffs targeting automobiles and auto parts, as well as the key materials used to make them.
He said the measures are designed to convince companies in the United States and abroad to make their products in the United States.
New York expansion trading volume was about 1.5% lower in New York after earnings were announced.
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A wellness enthusiast and certified nutrition advisor, Meera covers everything from healthy living tips to medical breakthroughs. Her articles aim to inform and inspire readers to live better every day.
