Ford Motor Company president and CEO James Hackett answer questions from the media during a press conference at Ford Motor World Headquarters. REUTERS/Rebecca Cook

Ford Motor Co (F.N) Chief Executive Officer James Hackett said on Wednesday that metals tariffs are costing the carmaker $1 billion.

Hackett, speaking at the Bloomberg business forum conference in New York City, said tariffs were very negative to the company and that most of the supply came from American suppliers.

Ford had previously said that despite buying the vast majority of steel and aluminum for U.S. production domestically, the tariffs could result in higher domestic commodity prices.

The United States in March said it would impose a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum.

Automakers have warned that U.S. President Donald Trump’s steel and aluminum tariffs would boost car prices by hiking commodity costs for manufacturers.

The carmaker in July lowered its full-year earnings forecast due to slumping sales and trade tariffs in China and its struggling business in Europe.

The automaker’s struggles to boost sales in China have showed no sign of ending despite taking steps to bring new products to market.

The company’s shares were down 1 percent at $9.28 in morning trade.


Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D'Silva