Ford Motor Company has revised its financial expectations for the year, forecasting a $1.5 billion hit to its operating profits due to the ongoing effects of U.S. tariffs under the Trump administration.
The Michigan-based automaker announced on Monday that it would withdraw its previous financial guidance, which had predicted operating profits between $7 billion and $8.5 billion for 2025. The decision comes amid continued uncertainty surrounding U.S. trade policies and their impact on the global automotive industry.
Ford warned that the supply chain disruptions caused by tariffs could result in widespread production challenges across the sector. The company cited not only the tariffs themselves but also changes to their implementation and the potential for retaliatory actions by other countries as contributing factors to these risks.
“These are substantial industry risks, which could have significant impacts on financial results, and that make updating full-year guidance challenging right now,” Ford said in a statement.
The global automotive industry has been grappling with the ramifications of U.S. tariffs on vehicle and parts imports. While President Trump recently exempted certain Chinese-made parts from tariffs and offered reprieves on steel and aluminum levies, many carmakers, including General Motors, have adjusted their financial forecasts to account for the ongoing trade uncertainties. GM, for example, lowered its earnings guidance last week, projecting a 23 percent decrease in the midpoint of its adjusted operating earnings range.
Ford, which manufactures a larger portion of its vehicles in the U.S. compared to some of its competitors, is less exposed to the tariffs but still faces financial challenges. The company has taken steps to mitigate tariff costs, such as utilizing bonded trucks for cross-border shipments between Mexico and Canada, which helps reduce customs duties.
Despite these efforts, Ford reported a 64 percent decline in net income for the first quarter of 2025, with earnings dropping to $471 million. Adjusted operating earnings also fell to $1 billion, and revenue decreased by 5 percent to just under $41 billion. This decline was partly attributed to planned downtime at several production facilities, including the Kentucky Truck Plant, which manufactures the Super Duty trucks.
Following the announcement, Ford’s stock dropped by 2.6 percent in after-hours trading.
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