Trump crush domestic automobile production

If Ford being profitable was a problem, Trump has solved it:

Ford Motor paid out more than $800 million in tariffs last quarter, despite manufacturing most of its vehicles in the U.S.

The tariff bill came from parts imported from outside of the country as well as from fees on steel and aluminum. The hit helped wipe out the company’s net profit, leading to its first quarterly loss since 2023.

Executives said they are pressing the Trump administration to lower levies on parts and materials. “They’ve made it clear that Ford as the most American automaker should not be disadvantaged,” finance chief Sherry House said. “We are optimistic.”

The company said tariff-related costs will cut about $2 billion from its annual earnings, more than the $1.5 billion it predicted three months ago. 

The company reported a net loss of $29 million, compared with $1.8 billion in net income a year ago. Revenue rose to $50.2 billion, from $47.8 billion a year ago. Ford shares are down 3.4% in after-hours trade.

There are three related points worth making here:

• The role of lower tariffs in the decline of domestic manufacturing is probably less than generally thought.
• Even if you disagree with point #1, it is harder for tariffs to play a role in restoring domestic manufacturing, particularly when they’re imposed by executive fiat. And it’s even less likely that they can play a significant role in brining back well-paying manufacturing jobs.
• Trump’s particular tariffs are structured to be particularly bad for domestic auto manufacturing.

In summary, Trump is unpopular because people are just tired of all the winning.