Ford Says US Steel Most Expensive In The World Due To Trump’s Tariffs

John Hinrichs, Ford’s head of global operations, said the Trump administration’s metal tariffs have made U.S. steel prices the most expensive in the world thanks to the President’s trade war with China, reported The Detroit News. 

“U.S. steel costs are more than anywhere else in the world,” Hinrichs said Monday at a Michigan Assembly plant marking the start of Ranger pickup production. Hinrichs said Ford officials have been communicating with the Trump administration about the tariffs: “The government knows our position about where we need to be in order to be competitive globally. We tell them that we need to have competitive costs in our market to be able to compete around the world.” 

Ford CEO Jim Hackett called on President Trump last month to resolve trade disputes, warning that the second-largest American automaker could experience severe financial damage. He said the steel and aluminum tariffs were projected to cost Ford roughly $1 billion because it sources most of its metals from U.S. companies. 

Ford, General Motors Co., and Fiat Chrysler Automobiles have all readjusted full-year earnings outlooks in the second quarter due to soaring costs of domestic sourced metals. 

“Domestic hot-rolled coil — the benchmark price for American-made steel — has gained 28% in 2018 as the Trump administration implemented tariffs on imports. The levies helped push prices to about $920 a metric ton earlier this year, the highest in a decade. U.S. steel currently costs about $260 more per short ton than steel in China, which accounts for more than half of global demand,” said Bloomberg. 

President Trump has called American companies “babies” for complaining about the tariffs. He accused Harley-Davidson, which just reported its biggest revenue drop in more than 8 years, using them as an excuse to move some operations to Europe and Asia.