Ford Motor Company CEO James Hackett said Wednesday that steel and aluminum tariffs have cost the automaker $1 billion.
Tariffs severely hurt the company because most of their supply came from U.S. suppliers, Hackett said at the Bloomberg business forum conference in New York City, Reuters reported.
President TrumpDonald TrumpGraham says he hopes that Trump runs again Trump says Stacey Abrams 'might be better than existing governor' Kemp Executive privilege fight poses hurdles for Trump MORE slapped tariffs of 25 percent on steel and 10 percent on aluminum imports in the spring and businesses like carmakers have complained that their costs have soared, especially following the price of steel rising 25 percent.
The metals tariffs directly hit almost $50 billion worth of goods, and billions worth of downstream goods.
A wide range of businesses from auto dealers to labor unions say the tariffs are hitting hard.
The American Automotive Policy Council estimates steel and aluminum tariffs will cause a $400 per car price increase.
Besides steel and aluminum tariffs, there is growing concern from automakers and businesses involved in the industry about the Trump administration's Section 232 investigation into whether a 25 percent tariff should be imposed on foreign autos and auto parts.
"Auto suppliers and consumers are already suffering from Section 232 tariffs," said Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchLobbying world Congress, stop holding 'Dreamers' hostage Drug prices are declining amid inflation fears MORE (R-Utah) at a Wednesday hearing on the potential auto tariffs.
"That’s one reason I was stunned that on May 23 the Department of Commerce initiated another investigation under Section 232, this time into the national security threat from automobile and auto parts imports," Hatch said.
This investigation covers more than $200 billion worth of trade.
If Trump decides to impose the 25 percent tariffs, consumers would likely see new car prices rise $6,000 to $7,000 per vehicle.
"Our trade policy should strengthen our relationships with our allies while targeting China’s most harmful trade practices," Hatch said.
"Tariffs on autos and auto parts are not going to help us achieve any of these things."