The warnings against tariffs were not heeded by the United States government, and they are now coming to fruition. Ford Motor Company has announced that the Trump Administration’s tariffs on imported Chinese goods and retaliatory tariffs have cost the company $1 billion and they will lay off workers to cover that cost.
Trump’s tariffs and the retaliatory tariffs they triggered from the Chinese government are taking a major toll on the U.S. auto industry. Ford CEO Jim Hackett told Bloomberg last month that tariffs on imported aluminum and steel alone dealt a blow to company profits. “From Ford’s perspective the metals tariffs took about $1 billion in profit from us,” Hackett said. “The irony of which is we source most of that in the U.S. If it goes on any longer, it will do more damage.”
Trump’s auto tariffs have impacted the company to the tune of $1 billion, and the president’s trade policies threaten to play havoc with Ford’s ongoing reorganization, Chief Financial Officer Bob Shanks warned.
Ford will be making cuts to its 70,000-strong white-collar workforce in a move it calls a “redesign” of its staff to be leaner, have fewer layers, and offer more decision-making power to employees, the company announced according to NBC News. “A lot of the [reorganization] is about making different choices about strategy,” Shanks told NBC News, adding that the goal isn’t just to slash spending but to improve the “fitness” of the company.
The exact number of layoffs is not yet known, however, a recent report by Morgan Stanley estimates “a global headcount reduction of approximately 12 percent,” or 24,000 of Ford’s 202,000 workers worldwide. “Such a magnitude of reduction is not without precedent in the auto industry,” analysts wrote in the investment note. And the result of the tariffs will make an impact on the U.S.’s workforce. Ford is also lagging behind their competition, selling an anemic 32.8 vehicles per employee. Long-time rival GM puts out 52.7 vehicles per employee. It’s unclear exactly how improved efficiencies will impact potential job cuts, reported NBC News.
Trump originally threatened Ford with hefty tariffs on vehicles the company intended to start importing from a factory in Mexico. This was back when Trump was nothing more than a presidential candidate. Ford backed out of the plan to import cars from Mexico, but rather than return production to the U.S. it decided to move it to China to cut costs. Ford also stopped plans to create a crossover vehicle because of the trade war. “This is the first of potentially many vehicles that will disappear from the U.S. market” due to the trade war, Kristin Dziczek of the Ann Arbor, Michigan-based Center for Automotive Research warned.
The effects of the trade war will begin to ripple across the economy any time now, making products more expensive and costing Americans more jobs. This trade war will be paid for by the American worker and consumer, and it’s beginning to look bleak as neither country appears to want to budge.
#1: Justified To: Deckard (#0)
This a war with China.
Do you people not get this?
This is about doing the right thing even if it hurts in the short term?
Good hard working Americans have been screwed since the 70's over one sided free trade and someone dares stand up for these hard working people you want it stopped because super rich guys don't like it! Its about fairness and America first for once in 40 years!
Justified posted on 2018-10-11 11:19:34 Reply Private Reply
#2: Deckard To: Justified (#1)
Super rich guys like the 24,000 workers who may be laid off?
The rich guys ain't gonna be affected by this - Joe Six-Pack will be.
Deckard posted on 2018-10-11 12:54:35 Reply Private Reply
#3: A K A Stone To: Justified (#1)
A K A Stone posted on 2018-10-11 13:00:10 Reply Private Reply
#4: Justified To: Deckard (#2)
Either we are a country or not. If you do not want a country then leave to a libertarian country. Oh wait there isn't one because libertarian country doesn't work any better than socialism. Once countries figure out you will not defend you borders they will set out to screw the country into oblivion. That's why no borders, one sided free trade with unlimited immigration doesn't exist. It can't!
Justified posted on 2018-10-11 15:41:45 Reply Private Reply
#5: Justified To: A K A Stone, Deckard (#3)
Justified posted on 2018-10-11 15:43:34 Reply Private Reply
#6: Pinguinite To: Deckard (#2)
There has been a massive trade deficit for generations. This has created a huge risk for the US economy and tariffs are the correct way to address this problem.
It should have been done long ago but wasn't because the decision makers were pretty much all stock holders who saw to their own advatage in allowing the trade deficit to continue.
No one, in my view, can seriously suggest that allowing the massive trade deficit to continue is better for Joe Sixpack. There are no painless solutions, but if you have a suggestion on how the trade deficit can be eliminated without tariffs, I'm all ears.
Pinguinite posted on 2018-10-11 18:30:15 Reply Private Reply
#7: Pinguinite To: Justified (#4)
That's an unfair hit on Libertarianism. Not all libertarians agree with open borders. I sure don't.
Pinguinite posted on 2018-10-11 18:32:00 Reply Private Reply
#8: Justified To: Pinguinite (#7)
I think they will in time come around to one sided free trade. Either fair trade or protect the homeland.
Justified posted on 2018-10-11 19:48:16 Reply Private Reply
#9: Pinguinite To: Justified (#8)
The open borders plank is based on the philosophy that freedom of movement is central to liberty in general. While I understand that in principle, it does fail in practice.
Pinguinite posted on 2018-10-11 20:07:12 Reply Private Reply
#10: GrandIsland To: Justified (#5)
The libtard left and a Paultards wet dream to indoctrinate the sheeple.
GrandIsland posted on 2018-10-11 22:34:32 Reply Private Reply
#11: GrandIsland To: Deckard (#2)
FAIR trade, douche bag. Learn about it.
GrandIsland posted on 2018-10-11 22:37:51 Reply Private Reply
#12: A K A Stone To: Deckard (#0)
Deckard you posted a bold faced lie again.
Do not post from this lying author again. Ever. Or this stupid fake news site.
They lied.
Got it dunce? The mainstream media is hellbent on ruining President Trump’s reputation. Their latest ploy has been blaming him for Ford Motor’s recent announcement of layoffs within the company. The liberal media claimed that Trump’s tariffs were to blame. A spokesperson for Ford spoke to Watchdog.org, however, and explained that the whole thing is a “mischaracterization.”
The most recent job cuts will have an impact on salaried employees only. Manufacturing employees will not be affected. The spokesperson also explained that it has nothing to do with President Trump’s tariffs.
fbnewscycle.com/av/? fbclid=IwAR17tlLYtuQjXFAyBKrzsm33E7Ki0mso0G05aO54XiTo4rL0qKGZB4Z6SuM
So all your points you and the other sell outs made are bullshit lies.
So shut the fuck up about tariffs unless you have something true to say.
Now if you are man enough to admit you are wrong will tell if you have character or are a lying sack of shit.
A K A Stone posted on 2018-10-14 08:19:04 Reply Private Reply
#13: A K A Stone To: Deckard, Gatlin, Grandisland (#0)
So this Mac Salvo just made the shit up.
WHat an asswipe. What a gullible fool you are Dedktard.
So don't post from this lying propagandist site again ever.
Grandisland and Gatlin will hopefully remind me of this if you do and I don't notice.
A K A Stone posted on 2018-10-14 08:23:43 Reply Private Reply
#14: GrandIsland To: A K A Stone (#13)
GrandIsland posted on 2018-10-14 22:11:15 Reply Private Reply
#15: A K A Stone To: GrandIsland (#14)
A K A Stone posted on 2018-10-14 22:20:09 Reply Private Reply