Ford Motor Company has revised its tariff impact forecast sharply upward, now estimating that trade duties will cost it around $2 billion this year. The projection highlights the mounting pressure American manufacturers are facing under U.S. President Donald Trump’s ongoing tariff regime, which aims to reconfigure global supply chains and encourage domestic production.
Despite the fact that Ford builds the majority of its vehicles within the United States, the firm revealed it had already absorbed $800 million in additional tariffs during the April to June quarter alone. The company’s latest financial disclosure also reflected losses stemming from the termination of a key electric vehicle program, underscoring the broader challenges currently confronting the auto industry.
Chief Financial Officer Sherry House explained that Ford had raised its tariff cost projections after duties on products from Mexico and Canada remained elevated longer than anticipated. The company operates several manufacturing facilities in both countries. In addition, U.S. tariffs on imported raw materials such as aluminium and steel have significantly inflated production costs.
While Ford has managed to cushion the blow compared to some of its competitors—thanks in part to its heavy domestic manufacturing footprint—the financial burden remains substantial. Last week, General Motors reported over $1 billion in tariff-related expenses, while Volkswagen said its exposure stood at approximately $1.5 billion.
Ford’s Chief Executive Officer Jim Farley confirmed that the automaker is maintaining ongoing dialogue with the White House in hopes of negotiating relief, particularly regarding levies on auto parts. “We see there’s a lot of upside depending on how the negotiation goes with the administration,” Farley stated, indicating that favorable policy changes could help ease the strain.
President Trump’s trade strategy, which includes sweeping tariffs on cars, car parts, and essential materials, is part of a broader effort to bring more industrial production back to American soil. The administration argues that increased domestic manufacturing is essential for long-term economic resilience and national security.
However, as tariffs continue to ripple through various sectors, major U.S. corporations are voicing growing concern over their financial impact. Ford’s announcement is one of the clearest signs yet that even firms with a strong American manufacturing base are not immune to the global trade disruptions brought on by the Trump administration’s protectionist approach.
Following the earnings announcement, Ford’s stock slipped about 1.5% in after-hours trading on Wednesday, reflecting investor anxiety about rising costs and uncertain policy outcomes.
