Ford Motor reported that U.S. tariffs on imported vehicles, steel, and aluminum will have a larger impact than expected, with a $800-million hit in the second quarter. The automaker raised its full-year projected hit from tariffs to $3 billion, aiming to reduce costs through negotiations with the White House.

Despite the tariff challenges, Ford managed to post revenue of $50.2 billion for the quarter, up 5% from the previous year. The automaker has been offering aggressive discount programs, including a “zero, zero, zero” campaign, to attract customers and gain market share from competitors.

Ford’s second-quarter results showed a 21% decrease in earnings per share, with a net loss of $36 million. The decline was partially due to charges related to canceling a three-row electric SUV and a recall costing $570 million. The automaker aims to offset $1 billion of its gross tariff costs for the year.

Competitor General Motors reported a steeper tariff impact, with a $1.1-billion hit for the quarter. GM projects a $4-billion to $5-billion tariff impact for the year, planning to offset 30% of the expense. Jeep-maker Stellantis also expects tariffs to add $1.7 billion in expenses for the year.

Ford’s strong domestic manufacturing base has made it more resilient to tariffs, producing around 80% of the vehicles it sells in the U.S. domestically. Despite this advantage, the automaker still faces challenges with high levies on materials like aluminum, steel, and copper. Additionally, supply chain disruptions have affected production.

Ford’s investments in electric vehicles and software, coupled with quality issues, remain significant challenges. The automaker recorded a $1.3 billion operating loss in this segment for the quarter, and the elimination of a consumer tax credit in September is expected to impact EV sales growth. CEO Jim Farley has made reducing quality problems a priority since taking on the role in 2020.

Read more at Yahoo Finance: Ford raises projected tariff hit to results, shares drop 3%