Ford CEO Jim Hackett urged the Trump administration to resolve its trade disputes with China and Europe, noting that import tariffs have cost the Detroit-based company $1 billion profits.
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“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 with Bloomberg. “If it goes on longer, there will be more damage.”
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Earlier this year, the Trump administration imposed import tariffs of 25 percent on steel and 10 percent on aluminum, arguing the duties were necessary to protect U.S. interests. A further $250 billion in tariffs were imposed on other Chinese goods. China, the European Union and other nations have responded with retaliatory tariffs.
The tariffs have already had a noticeable impact on Ford’s business strategy. The automotive giant scrapped plans last month to import Ford Focus vehicle models from China, citing the economic climate in the region.
“What we’re urging our administration to do -- where we’re in China and in Europe -- we say, you need to come to agreement quickly,” Hackett added.
Ford said last July it has no plans to increase prices for its vehicles sold in China to offset the impact of tariffs. The company reported total profits of $7.6 billion in 2017, though net income is expected to fall in fiscal 2018.