Motor industry giant Ford says it expects tariffs to cost it about $2bn (£1.5bn) this year, more than previously expected, despite building most of its cars in America.
The company says it had already paid an extra $800m in duties in the three months ending in June. It also suffered losses related to cutting an electric vehicle programme.
It is the latest indication of the impact of US President Donald Trump’s tariffs on major American firms and the challenges ahead as he seeks to reshape global supply chains.
But Ford is seeing a less pronounced tariffs impact than some of its competitors as much of its manufacturing is in the US.
Ford’s finance chief Sherry House said the firm had raised its forecast for the cost of tariffs on its business because levies on Mexico and Canada, where it has facilities, have remained higher for longer than expected.
She also pointed to US tariffs on imported aluminium and steel.
Last week, rival carmaker General Motors said tariffs had already cost it more than $1bn, while Volkswagen put its hit at $1.5bn.
Jim Farley, Ford’s chief executive, said the firm is in regular contact with the White House as the company tries to secure lower tariffs, especially on vehicle parts.
“We see there’s a lot of upside depending on how the negotiation goes with the administration,” he said.
Trump has raised duties on most goods, with special tariffs targeting cars and car parts, as well as the key materials used to manufacture them.
He has said the measures are intended to convince companies, in the US and abroad, to make their products in America.
Ford’s shares were about 1.5% lower in extended trading in New York on Wednesday after the earnings announcement.
By BBC News
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