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Jim Hackett says metal tariffs have cost Ford $1 billion in profits

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CEO Jim Hackett divulged in an

interview with Bloomberg

that the Trump administration’s tariffs on metals imported from the European Union,


and Mexico have affected the automaker’s balance sheet, adding that trade disputes need a quick resolution.



perspective, the metals tariffs took about $1 billion in profit from us,” Hackett told the outlet. “The irony is we source most of that in the U.S. today anyways. We’re in a good place right now, but if it goes on longer there will be more damage.”

President Trump in March announced his intention to enact 25 percent tariffs on steel imports and 10 percent on imported aluminum from the three trade zones as a way to protect the U.S. steel industry. The move

sent U.S. automakers’ stock prices plunging

at a time when they were coming off weak monthly sales reports.

Separately, President Trump has targeted China with two rounds of tariffs targeting a combined $260 billion worth of imports. China has responded by enacting 25-percent tariffs on U.S. goods including vehicle imports.

In the interview, Hackett said that has hurt demand for


, which has found a growing market for its

luxury vehicles

in China, and made the price of the

Lincoln MKC

less attractive to Chinese buyers. The


is built at the company’s Louisville, Ky. assembly plant. “We’ve had to move people in that factory to other operations because of that trade problem,” he said. It’s not clear what those moves entail or how many workers were involved.


sought comment from a Ford spokeswoman and will update this story if we hear back.

Ford last month announced it was

scrapping plans to import the Focus Active



to the U.S. from China because of the new 25-percent tariffs on Chinese imports.

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