American car manufacturers warn that new tariffs on vehicles and parts will severely damage their profits, with companies like Ford planning to raise prices to cope. As tariff-induced costs increase, layoffs loom, as seen with Volvo's announcement of job cuts. Ford CEO Jim Farley predicted significant industry profit losses and negative impacts on US jobs due to prolonged tariffs. While the government posits that tariffs will revitalize domestic manufacturing, this conflicts with current market challenges and labor costs, suggesting potential job losses may outweigh any gains from brought-back production.
Ford CEO Jim Farley stated, 'There is no question that tariffs at 25% level from Canada and Mexico, if they're protracted, would have a huge impact on our industry, with billions of dollars of industry profits wiped out.'
Volvo announced, 'Heavy-duty truck orders continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs.'
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