Trump tariffs lifted steel prices in 1Q: Ford CFO

Ford Chief Financial Officer Bob Shanks told FOX Business that the automaker held tight on cost, but rising metal prices resulted in higher commodity expenses for the quarter.

“We saw an increase in commodities of about half a billion dollars in the quarter,” he said on Wednesday.

President Donald Trump’s announcement to impose a tariff of 25% on steel and 10% on aluminum comes at a tough time for U.S. automakers, which have faced flattening sales in recent months. The tariffs will likely create higher prices for steel that could be passed on to customers.

“The threat of tariffs, particularly we believe on steel, had an impact on market prices,” Shanks said during an interview on “After the Bell.”

Ford is a large purchaser of both steel and aluminum. The company's F-Series pickup trucks, the nation's top-selling vehicle line, are built using aluminum panels.

Shanks said the automaker is focused on building great new products to maximize revenue while reducing incremental cost.

“What we have to do is become more fit, but then on top of that have great new products,” he said.

The Dearborn-based automaker is capitalizing on its iconic Expedition and Navigator SUVs to keep up with the consumer trend toward larger vehicles.

“We’re seeing consumers around the world, not just in the United States, move towards more SUVs as well as trucks and that’s very positive for us,” Shanks said.