Automotive giant Ford posted its first quarterly loss in two years on Wednesday after seeing $800 billion in tariff costs.
Ford reported $50.2 billion in second-quarter revenue, a 5 percent increase from the second quarter of last year.
The Dearborn, Mich., company reported a net loss of $36 million, stemming from “special charges related to a field service action and expenses related to a previously announced cancellation of an electric vehicle program.”
Costs related to tariffs will run the company around $2 billion in annual earnings.
Ford’s top executives are in touch with the White House to tamp down tariffs on steel and aluminum.
They’ve made it clear that Ford as the most American automaker should not be disadvantaged,” Ford’s CFO Sherry House said on Wednesday, according to The Wall Street Journal. “We are optimistic.”
President Trump slapped a 25 percent tariff on imported automobiles and parts in April. Since then, he has adjusted portions of the auto tariffs and reached a deal with the European Union, including a 15 percent tariff on cars.
“We recorded our fourth consecutive quarter of year-over-year cost improvement, excluding the impact of tariffs, building on progress we made last year when we closed roughly $1.5 billion of our competitive cost gap in material cost,” House said.
Ford manufactures most of its vehicles in the U.S. The company has raised prices in May on three of its models produced in Mexico due to, in part, the impact of Trump’s tariffs.
Ford reported having $28.4 billion in cash and $46.6 billion in liquidity at the end of the quarter.
