The tariffs have eaten $1 billion in profit, and reports now say over 20,000 jobs could be threatened.
Current political climate in the United States. There’s been plenty of back-and-forth talk about the trade war between China and the U.S., but now Ford seems to be pressing the point further that President Trump’s tariffs are a driving force behind the trouble. And it could lead to massive layoffs at the company.
Company is about to lose $1 billion in profits
Ford CEO Jim Hackett was expecting the company to lose $1 billion in profits because of the metal tariffs levied on steel and aluminum imports from China. NBC News reports the company will also make significant cuts to its white-collar workforce. That would constitute approximately 12 percent of Ford’s global workforce.
The tariffs set against China by the Trump Administration don’t appear to be helping on that front.
As a result of all this, Ford stock has dropped below $9 for the first time in several years. With the rumors of mass layoffs now spreading, it appears things will get worse for the automaker before they get better.