Ford CEO: Trump's Tariffs Will Cost $1 Billion In Profits, 300,000 Jobs Will Be Cut
President Donald Trump's claim to fame since being elected is that the economy and jobs are at all-time highs.
Well, Ford's CEO just came out saying, not his company.
On Wednesday, Ford Motor CEO James Hackett came out saying that the steel and aluminum tariffs imposed by the Trump administration will cost it about $1 billion in profits. Honda Motor Co. also said that the higher steel prices were costing it "hundreds of millions of dollars" in new costs.
“From Ford’s perspective the metals tariffs took about $1 billion in profit from us,” Hackett said at a Bloomberg conference in New York, “The irony of which is we source most of that in the U.S. today anyway. If it goes on any longer, it will do more damage.”
One important point: The two automotive companies get the vast majority of their steel from within the United States domestically but they estimate further price increases due to commodity prices being the way they are.
Automakers are warning of higher automobile prices in general and are preparing for a new round of tariffs.
Just a few months ago, Trump ordered a “Section 232” national security investigation into whether it should increase tariffs from what they are now to 25 percent on all vehicle and auto parts imported in from the European Union and other trading partners.
Analytics data firm IHS Markit says that full implementation of the 232 tariffs will add between $1,800 to $5,700 to a new vehicles total price. In addition to this, it says that new auto sales over the next few years will decrease by millions and cost around 300,000 in auto-related jobs in dealerships and factories around the country.