Jim Farley, CEO of the Ford Motor Company, said he expects tariffs to stay in the area for at least three years. The company also said that it is expected to lose billions in this war. However, it maintains a positive stance and continues to take risks, such as maintaining the price for its vehicles at least.
The biggest war team in tariffs is China and the US. Recently, investors have remained unsure about their next moves. Trump had no plans to talk to Xi Jinping of China. However, he said in an interview on TV that his administration was open to lowering the high 145% tariffs it was putting on Chinese goods.
On the other hand, Beijing said it looked in a variety of ways in which US officials wanted to start talking about tariffs. It hoped the people would have the trade war between the US and China would not worsen.
In addition, China is said to have created a list of US goods that will not be subject to 125% tariffs to ease trade tensions without providing public pressure. However, Trump supported 145% tariffs on Chinese goods by saying that China is “appropriate” and perhaps paying for it. And the back -back goes on.
However, Ford and Jim Farley will not be hit under the rock. According to Barron, the company builds 80% of domestically selling vehicles in the US. This is why they have leisure in maintaining their prices. Therefore, the Looking forward of tariffs left for 3 years will make the company some good because it competes with other auto companies in the US.
Ford has suspended automotic exports to China
The automaker has stopped exporting the automotic to China. However, it still imports vehicles such as Lincoln Nautilus from the country. Ford executives said the Tariffs will add $ 2.5 billion to the company's overall annual cost. Most of these money will go to import cars from Mexico and China.
Ford suspended its 2025 guide and expects a $ 2.5 billion hit from tariffs this year
CEO Jim Farley, Back in February: pic.twitter.com/lpfhxe2o6y
– Morning Brew ☕️ (@morningbrew) May 5, 2025
Executives from the company said it was able to cure the cost of nearly $ 1 billion by doing different things, such as using bond carriers to move cars from Mexico to Canada so they didn't have to pay us tariffs.
Ford sales drop 5% to $ 40.7 billion in the quarter, which is over $ 36 billion expected. Some numbers say that Trump's 25% tariffs on those who are imported cars are worth automakers to us over $ 100 billion this year.
Revenue climbs because people are in a hurry to buy cars because they are afraid Tariffs will cause rising prices. Many people buy cars at the same time, and Ford is one of the companies that offers deals to get a piece of market.
Barclays analysts wrote on a note that investors chose Ford in GM because 79% of US sales were built in the US, compared to 53% of GM's.
Ford's EV can lose up to $ 5.5 billion
Ford is talking to Trump's taxes, but its de -electric cars cost a lot of money. The car company said software and electric vehicles (EV) businesses could lose up to $ 5.5 billion this year.
According to reports, Ford has stopped an expensive project to produce FNV4, a next -generation electrical design for its cars, as delays and cost increases are impossible to complete. When asked about the report, Farley said the move was “a very significant saving for the efficiency of capital.”
Ford Pro, the company's commercial vehicle division, made $ 15.2 billion in sales in the first quarter, 16% less than last year. Ford's Gasoline-Engine business made $ 21 billion in sale in the third quarter.
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