Ford is projected to pay a $2 billion bill due to the Trump administration’s tariffs, a $500 million increase from its last quarter forecast. CEO Jim Farley stated that Trump’s reduced tariffs on Japan would give automakers a “meaningful” advantage, as they would benefit their Japanese rivals. The company had projected a tariff hit of $1.5 billion in its last quarter. Farley expects automakers to adopt a regional rather than globalized approach towards their businesses, driven by the rise of electric vehicles and new carbon regulations. The US has reduced its tariffs on Japan to 15% from 25%, which Farley believes will give Asian rivals a “meaningful” cost advantage. Ford is working with the Trump administration to minimize tariff expenses and become more competitive, but Farley’s plan is not to compete in commodity segments. Farley has previously discussed the challenges Ford faces in the face of new tariffs, stating that Trump’s 25% tariff on Canada and Mexico was a “windfall for South Korean and Japanese companies.”
Ford anticipates that Trump’s tariffs will result in a $2 billion loss and provide a significant advantage to Japanese automakers. Sac 861
