President Donald Trump’s tariffs have already cost the Ford Motor Co. about $1 billion, according to CEO Jim Hackett — and if the administration doesn’t resolve its trade issues soon, it could “do more damage” to the company.
> “The metals tariffs took about $1 billion in profit from us -- and the irony is we source most of that in the U.S. today anyways,” Hackett said in an interview on Bloomberg Television. “If it goes on longer, there will be more damage.”
> Ford and other global automakers have opposed the president’s use of tariffs and the retaliation they spur. Last month,Jim Farley, Ford’s president of global markets, described Trump’s tariffs on steel and aluminum as a “significant headwind for us.” A few weeks later, the second-largest U.S. automaker canceled plans to import the Focus Active crossover from China, citing Trump’s vehicle tariffs.
Hackett said he is urging the Trump administration to act quickly in reaching an agreement with China and Europe.
> Ford reported net income in 2017 of $7.6 billion, the most since 2013, but with analysts estimating a29 percent drop in profit this year, it’s embarked on an $11 billion restructuring effort to improve margins in the core automotive business while investing billions in electric and autonomous-vehicle technology.