Tariffs imposed by President Donald Trump will reportedly cost Ford $1 billion, CEO James Hackett said.
"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."
A spokesperson for the automaker said the CEO was referring to internal forecasts generated by Ford for higher tariff-related costs in 2018 and 2019.
Hackett is working on a $25.5 billion restructuring of the company in an effort to cut costs and remain competitive with other automakers across the world. Ford is making aggressive job cuts as part of that reorganization NBC News reported. One estimate from Morgan Stanley says up to 12 percent, or 24,000 of Ford's 202,000 workers worldwide, find themselves out of a job.
At President Trump's direction, the United States imposed a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum from most countries in March. Domestic steel producers have been able to raise their prices thanks to the tariffs. However, automakers warn that the higher prices they pay for steel and aluminum will result in higher car prices for consumers.
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