Ford CEO: steel and aluminum tariffs will cost the company $1 billion

SMM, Sept. 27: Ford CEO Hackett said tariffs imposed by the Trump administration on imports of steel and aluminum would cost the company $1 billion. Ford said the number of losses would continue to grow from March to 2019. "ironically, most of our metal is now purchased in the United States," Hackett told Bloomberg Television. " He explained that GM bought most of the metal from American manufacturers, which raised metal prices. "We are in a good position, but if the tariffs last longer, there will be more losses," said Peter Nagel, a senior analyst at IHS Markit. Other carmakers will face the same problem of rising costs. Eventually, they will have to raise the price of cars and trucks, or reduce discounts to make up for the increase in costs.

Ford and other carmakers could face more resistance if the Trump administration continues with its proposal to impose a new tax on car imports.

According to industry estimates, if the United States imposed a 25 per cent tariff on foreign-made cars, the cost of an ordinary new car sold in the United States could increase by more than $4000, and the cost of imported cars and trucks could increase by nearly $7000.

Separately, Federal Reserve (Federal Reserve) Chairman Powell said Wednesday that trade tensions between the United States and China and other countries have not yet been reflected in rising consumer prices. But he warned that Americans could eventually feel the sting of a trade war. "the retail prices of American goods are likely to rise," he said at a news conference in Washington.

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