American auto giant Ford Motor Company has warned that tariffs imposed by the U.S. government will cost the company roughly $2 billion this year, a significant increase from earlier projections. The estimate highlights the growing financial strain major U.S. firms are experiencing under President Donald Trump’s expanded trade measures.
Ford revealed in its latest earnings report that it incurred an additional $800 million in tariffs during the second quarter alone, driven largely by higher-than-anticipated levies on parts and materials imported from Mexico and Canada—two countries where the carmaker maintains production facilities.
Despite assembling most of its vehicles in the United States, Ford has not been spared from the broader impacts of Trump’s tariff regime, which includes duties on car parts, aluminium, and steel. Ford’s Chief Financial Officer Sherry House attributed the cost hike to tariffs that have “remained elevated longer than expected” on the company’s North American supply chains.
Ford’s announcement follows similar disclosures by other major automakers. General Motors said last week that it has already faced more than $1 billion in tariff-related costs, while Volkswagen reported a $1.5 billion hit linked to U.S. duties.
Ford CEO Jim Farley said the company is actively engaging with the White House in efforts to reduce tariff burdens, particularly on imported vehicle components.
“We see there’s a lot of upside depending on how the negotiation goes with the administration,” Farley said, indicating that a resolution could soften the financial blow in the months ahead.
The Trump administration has ramped up its “America First” trade agenda in recent months, imposing sweeping tariffs on imports in an effort to pressure companies into domestic production. The White House has defended the policy as a long-term strategy to bolster American manufacturing and reduce reliance on global supply chains.
However, industry analysts warn that the immediate consequences for U.S. firms—especially those dependent on complex international logistics—could be severe.
Ford also reported losses tied to the scaling back of one of its electric vehicle programmes, further weighing on its quarterly performance. Following the earnings release, Ford shares slipped 1.5% in after-hours trading on Wall Street.
While the company continues to outperform some of its global rivals due to its largely domestic production footprint, the prolonged uncertainty over trade policy remains a significant headwind for U.S. automakers.
