https://www.reuters.com/article/us-ford-motor-tariffs/trump-... Steel and aluminum tariffs imposed by the Trump administration have cost Ford Motor Co (F.N) about $1 billion in profits, its chief executive officer said on Wednesday, while Honda Motor Co (7267.T) said higher steel prices have brought “hundreds of millions of dollars” in new costs.“From Ford’s perspective the metals tariffs took about $1 billion in profit from us,” CEO James Hackett said at a Bloomberg conference in New York, “The irony of which is we source most of that in the U.S. today anyway. If it goes on any longer, it will do more damage.”
“From Ford’s perspective the metals tariffs took about $1 billion in profit from us,” CEO James Hackett said at a Bloomberg conference in New York, Hackett continues to whiff as Ford CEO. Outside of stockholders and Ford employees who get a profit based bonus no-one give a whit about Ford's profits. Tell customers how much more their new car will cost as Ford passes the tariff along, like WalMart is, and people will take notice. Even then, people buy at WalMart a lot more often than they buy a new Ford.Steve
Thank you for recommending this post to our Best of feature.An interesting side effect of the tariffs was mentioned yesterday in my screed on Nat Gas consumption. US based aluminum and steel producers are cranking up production of their normally un-competitive products to try to take advantage of the higher prices due to tariffs which is a large part of the recent increase in Nat gas consumption. They are usually un-competitive operations due to their age and old equipment. Timhttps://www.economist.com/finance-and-economics/2018/08/09/t...Tariffs on steel and aluminium are creating some winnersBut they are not quite the success rump thinks...There is more substance to the claim that they have brought American furnaces and smelters roaring back to life. ...More strikingly, even some of those whom protectionism was supposed to help are grumbling. The loudest complaints are about the inclusion of Canada in the list of countries thwacked by trade barriers, which has damaged a highly integrated economic area. ......The big question is whether any revival can be sustained. In the short term, tariffs are more likely to bring older, relatively inefficient steel plants back online than to stimulate new long-term investments, for the simple reason that the president could withdraw the tariffs at any moment. The newest aluminium smelter in America is around 40 years old. If primary aluminium production revives sustainably, it will be because American producers can access cheap, reliable energy.
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