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general motors
Ford Warns of Profit Plunge Thanks to Trump Tariffs
Ford's tariff troubles are notable because it "manufactures the most cars in the U.S. of any automaker," and yet is still "being squeezed by new trade barriers imposed by the White House," reported Bloomberg.
Jul 30, 2025
American automaker Ford on Wednesday followed in the steps of General Motors in warning that U.S. President Donald Trump's tariffs are going to take a hammer to its bottom line.
As reported by Bloomberg, Ford said that its profit could plunge by up to 36% this year as it expects to take a $2 billion hit from the president's tariffs on key inputs such as steel and aluminum, as well as taxes on car components manufactured in Canada and Mexico. News of Ford's guidance sent its stock shares diving by more than 2% in after-hours trading on Wednesday.
Bloomberg wrote that Ford's tariff troubles are notable because it "manufactures the most cars in the U.S. of any automaker," and yet is still "being squeezed by new trade barriers imposed by the White House."
Ford CFO Sherry House informed reporters during the company's quarterly earnings call that the White House was aware of the troubles the tariffs are causing U.S. automakers and she said that it "is working with us to get this right."
General Motors earlier this month also cited the Trump tariffs as a major reason why its profits fell by $3 billion the previous quarter. Making matters worse, GM said that the impact of the tariffs would be even more significant in the coming quarter when its profits could tumble by as much as $5 billion.
GM's warning came shortly after Jeep manufacturer Stellantis projected that the Trump tariffs would directly lead to $350 million in losses in the first half of 2025.
Trump made raising tariffs on foreign products a key plank of his 2024 election campaign despite the fact that he also ran on lowering inflation, and tariffs historically have led to higher, rather than lower, prices.
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Manufacturing Activity Sinks 'Sharply' as GM Blames Trump Tariffs for Profit Drop
Experts had expected a key manufacturing index number to tick upward, which makes the massive drop in July a significant and unpleasant surprise.
Jul 22, 2025
A key manufacturing activity indicator unexpectedly plunged over the last month amid warnings from American automobile giant General Motors that U.S. President Donald Trump's tariffs are swallowing its profits.
The Wall Street Journal reports that the Fifth District Survey of Manufacturing Activity's index "sank sharply" in July and fell to -20, which was a drop from the -8 number posted by the index in June. Experts surveyed by the Journal had actually expected the index number to tick upward to -6, which makes the massive drop in July a significant and unpleasant surprise.
The index is a survey of more than five dozen manufacturing firms located in the mid-Atlantic region of the United States that asks them to report activities including shipments, new orders, and employment. A monthly number below zero indicates that activity in these realms has shrunk rather than grown over the last month, and the Journal notes that the index has been registering negative numbers for five months straight.
And the month-over-month dive in manufacturing activity isn't the only signal of trouble ahead for domestic manufacturing. General Motors revealed on Tuesday that its profits took a significant dent in the past quarter thanks in part to the Trump tariffs on vital components such as steel.
In all, GM's core profits fell by $3 billion on the quarter and it projected that its third-quarter profits could drop by as much as $5 billion as more tariffs take effect. Although GM is expanding some of its manufacturing in the U.S. to mitigate some of the impact of Trump's tariffs, that likely can only go so far when big tariffs are still being levied on the imported raw materials that the company needs to build cars.
GM's warning about tariffs comes just a day after Jeep manufacturer Stellantis projected that the Trump tariffs would directly lead to $350 million in losses in the first half of 2025.
Trump made raising tariffs on foreign products a key plank of his 2024 election campaign despite the fact that he also ran on lowering inflation, as tariffs historically have led to higher, rather than lower, prices.
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UAW Slams Trump-Vance as 'Menace to the Working Class'
The union blasted them for "threatening the $500 million investment the Biden-Harris administration made in the General Motors Grand River Assembly Plant and the union jobs that investment would provide."
Oct 04, 2024
The United Auto Workers this week reiterated its warning that the Republican presidential ticket of Donald Trump and JD Vance is a threat to working-class Americans in response to a refusal by Vance to commit to honoring a $500 million federal grant for an electric vehicle plant in Michigan.
Both Trump and Vance—a venture capitalist turned U.S. senator from Ohio who often postures as a working-class ally—are campaigning in Michigan, a key swing state, this week.
The Detroit News reported Wednesday that on the campaign trail, Vance was "noncommittal" about the promised funding, part of $1.7 billion distributed by the Biden administration. The $500 million grant would help General Motors convert its Lansing Grand River Assembly Plant into an EV facility.
The UAW, one of several labor unions that have endorsed Democratic Vice President Kamala Harris and Minnesota Gov. Tim Walz, fired back Thursday, echoing its previous criticism of Trump and Vance.
"Donald Trump was the job-killer-in-chief while in the White House," the powerful union said in a statement. "His failed United States-Mexico-Canada trade agreement—or Trump's NAFTA as we prefer to call it—has led to the mass exodus of good, blue-collar jobs from the United States. In sharp contrast, the Biden-Harris administration has bet on the American worker and thanks to their policies, hundreds of thousands of good manufacturing jobs are returning to the United States."
"Now, Trump and JD Vance are invading Michigan and threatening the $500 million investment the Biden-Harris administration made in the General Motors Grand River Assembly Plant and the union jobs that investment would provide," the UAW continued. "The bottom line is that Donald Trump and JD Vance are a menace to the working class and are openly threatening to double down on Trump's legacy of job destruction."
In a potential boost to Democrats ahead of November 5, the Bureau of Labor Statistics announced Friday that in September federal unemployment hit 4.1% and the U.S. economy added 254,000 jobs, over 100,000 more than economists projected.
UAW president Shawn Fain, who led a major strike against Big Three auto companies last year, is set to join U.S. Sen. Bernie Sanders (I-Vt.) for weekend events in Michigan to support Harris. The pair plans to visit Warren, Grand Rapids, and East Lansing to discuss "the American healthcare system, the fight against corporate greed, and shoring up Michigan's manufacturing future."
Harris was in Michigan on Friday for events in Detroit and Flint, where she was set to "meet with leaders from the Arab American community," according to Reuters. "Meeting participants include leaders from the Muslim advocacy group Emgage, which recently endorsed Harris, the American Task Force on Lebanon, and a long-standing friend of Harris, Hala Hijazi, who has lost dozens of family members in Gaza."
"Other such as Jim Zogby, founder of the Arab American Institute and a longtime member of the Democratic National Committee, said he declined the invitation,"
Reuters reported. "Leaders from the Uncommitted National Movement protest campaign said they have not been invited to the meeting."
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