Ford Motor Company says it expects to lose about $2 billion this year due to tariffs, revising its earlier forecast upward. The carmaker, which manufactures most of its vehicles in the United States, revealed that it had already paid an additional $800 million in duties during the second quarter of the year.
The company’s finance chief, Sherry House, said the higher-than-expected costs are partly due to tariffs on imports from Mexico and Canada, where Ford also operates manufacturing facilities. She also cited sustained levies on steel and aluminium as significant contributors to the increased burden.
Ford’s experience underscores the growing toll of President Donald Trump’s trade policies on American manufacturers, even those that have largely aligned with his push to “build in America.” While Ford has fared better than some rivals thanks to its domestic operations, the impact is still being felt.
Rival automakers have also reported steep losses. General Motors said tariffs have cost it over $1 billion, while Volkswagen estimates a $1.5 billion hit.
Ford CEO Jim Farley noted that the company is in active talks with the White House to secure tariff relief, especially for imported vehicle parts. “There’s a lot of upside depending on how negotiations go with the administration,” he said.
Trump has sharply raised tariffs on goods from several countries, particularly targeting car parts and raw materials like aluminium and steel, with the aim of incentivising more domestic production.
Following its earnings announcement, Ford’s shares fell by 1.5% in after-hours trading on Wednesday.
