Two global automotive giants, Ford and Nissan, are now struggling with financial pressure following the implementation of trade tariffs by United States President (US), Donald Trump.
Ford Motor Co. recorded a loss of $36 million in the second quarter of 2025, compared to a profit of $1.8 billion in the same period last year. The loss was driven by one-time costs involving vehicle recalls and the cancellation of the electric vehicle (EV) program.
However, sales jumped 5% to $50.2 billion, driven by strong demand for new trucks and sport utility (SUV) models.
Ford also expects the direct impact of the tariffs on 2025 income to reach $3 billion, although around $1 billion has been successfully absorbed through various internal measures.
The company is now negotiating almost daily with the White House to demand tariff relief on imported parts, to ensure that the competitiveness of locally made vehicles remains intact.
Not stopping there, the automotive sector continues to be shaken with Nissan Motor Co. Japan's Nissan Motor Co. reported a net loss of $784 million for the first quarter, as revenue fell nearly 10% to $19.3 billion.
The company has not issued an official annual forecast due to global market uncertainty, and is taking restructuring measures including plant closures and workforce reductions.
Analysts see Nissan as one of the Japanese manufacturers most vulnerable to US tariffs on imported vehicles, although they have now been lowered to 15%.
The developments point to continued pressure on the global automotive industry in an era of renewed trade tensions, with companies now forced to reassess their market strategies and supply chains.
