Ford Motor Co. said its profit this year is poised for a sharp drop on the growing fallout from President Donald Trump’s tariffs, underscoring the dramatic policy shifts in Washington that are upending the auto industry.

Ford said results for the quarter ending in June were $800 million lower because of Washington's tariffs. Competitor General Motors reported steeper tariff headwinds, with a $1.1 billion hit for the quarter, largely from imports on its entry-level Chevrolet and Buick models made in South Korea.

Ford CEO Jim Farley said the automaker expects a $2 billion tariff bill, and that current tariff policies could give Japanese rivals an advantage.