Ford CEO Warns of Job Losses Due to Proposed Tariffs

Ford's Chief Executive Officer has expressed serious concerns regarding the potential impact of increased tariffs proposed by U.S. President Donald Trump on the American automotive industry. The CEO indicated that a long-term imposition of 25% tariffs on imports from Mexico and Canada could severely disrupt U.S. automakers, costing them billions in profits and threatening jobs within the country.

The proposed tariffs are part of a broader strategy aimed at bolstering the domestic economy, but they have drawn criticism not only from affected foreign nations but also from domestic industry leaders. The automotive sector has been particularly vocal, with Ford's CEO highlighting that competitors such as Hyundai, Kia, and Toyota can import vehicles from South Korea and Japan without incurring similar tariff burdens. This could place U.S. manufacturers at a significant disadvantage.

In his remarks on a U.S. news channel, the CEO emphasized the commitments made by both the White House and Congress to support the U.S. automotive industry rather than hinder its growth. In recent years, major American car manufacturers like Ford and General Motors have expanded their production facilities in neighboring countries, anticipating a free trade environment.

Recently, President Trump announced the implementation of additional tariffs on goods from Mexico and Canada, though the enforcement has been delayed by 30 days. On the other hand, tariffs on imports from China have already taken effect.

Ford has also been grappling with financial challenges in its electric vehicle segment, reporting an operational loss of nearly $1.4 billion in this area. This figure is approximately $180 million less than losses recorded in the previous year. The CEO remains hopeful that forthcoming electric models, which are expected to launch in a few years, will turn the tide for the company.

Despite these struggles, Ford managed to report an overall quarterly profit of $1.8 billion, driven by robust sales of traditional combustion engine vehicles and commercial trucks. This marks a significant turnaround from a loss of around $500 million in the same quarter last year. The company reported a five percent increase in revenue, amounting to $48.2 billion.

Looking ahead, Ford has projected a decline in adjusted operating profits for the current business year, estimating figures to range between $7 billion and $8.5 billion, down from $10.2 billion the previous year.