The major US automaker pointed to one-time costs related to vehicle recalls and the cancellation of an electric vehicle programme as factors behind a second-quarter loss of US$36 million, compared to profits of US$1.8 billion in the prior year.

But revenues jumped 5% to US$50.2 billion, a record, as the company notched robust sales of popular truck models and reported strong demand for new sport utility models.

The automaker estimated the second-quarter impact from tariffs to be about US$800 million, and it projected a full-year gross tariff hit of US$3 billion for 2025, although Ford said it was able to offset about US$1 billion of the costs.

US President Donald Trump has announced a slew of tariffs on other countries and on key materials like steel, while pursuing trade deals with major partners.

So far, Trump has sealed agreements with Japan and the European Union that set imports of finished cars at 15%. That levy is below the current 25% tariff on autos imported from Mexico and Canada. Ford is also affected by Trump levies on imported auto parts.

Japanese producers enjoy “a substantial structural advantage” over Ford due to these dynamics, said Ford CFO Sherry House, who described the Michigan company as in “near daily” communication with the White House.

“We’re having very constructive conversations to ensure a level playing field,” House said in a conference call with reporters. “We are optimistic at this point, but we do have more work to do.”

Ford has argued for greater relief in terms of imported parts for vehicles that are assembled in the United States.

Ford shares fell 2.9% in after-hours trading.