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Home » Ford Says Tariffs Will Cost Company $1.5 Billion in 2025

Ford Says Tariffs Will Cost Company $1.5 Billion in 2025

May 5, 20253 Mins Read Business
Ford Says Tariffs Will Cost Company .5 Billion in 2025
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Ford Motor said on Monday that the Trump administration’s tariff policies were likely to lower its 2025 profit, before interest and taxes, by about $1.5 billion. The company also dropped its forecast for the year, saying that predicting the future had become too hard.

Ford is less affected by President Trump’s 25 percent tariffs on vehicles than other automakers because most of the vehicles it sells in the United States are made in the country. General Motors said last week that the tariffs would increase its costs $4 billion to $5 billion this year.

“We believe we are well positioned to adapt to the changes tariffs are driving in our industry,” Ford’s chief financial officer, Sherry House, said in a conference call.

The company said the administration’s shifting tariff policies had the potential to disrupt to automotive supply chains, and they could force other nations to impose retaliatory tariffs on U.S. exports. It also noted further uncertainty in the Trump administration’s tax and emission policies.

“We felt it prudent to suspend our full-year guidance,” Ms. House said.

Ford had previously said it expected earnings for 2025, before interest and taxes, to be $7 billion to $8.5 billion.

The Trump administration has levied 25 percent tariffs on imported vehicles and auto parts. It has raised tariffs on imported steel and aluminum, which are used extensively in cars and trucks.

Those and other tariffs imposed by Mr. Trump signify a major shift in U.S. trade policy, especially as it affects trade between the United States, Canada and Mexico. For decades, cars and auto parts have been shipped across North America with little or no tariffs.

Ford currently makes a few vehicles, including a key electric model, the Mustang Mach-E, in Mexico, and the company plans to start making heavy-duty pickup trucks in Canada in 2026. Ms. House said the automaker was not considering changing its heavy-duty truck plans.

The company also reported that its profit in the first three months of the year fell to $471 million from $1.3 billion in the same period a year ago. Ford blamed lower vehicle sales because it had paused production at some factories to prepare for new models and made other changes aimed at reducing inventories of unsold cars and trucks.

Its revenue in the quarter declined 5 percent, to $40.7 billion. Ford narrowed its loss on electric vehicles to $849 million from a loss of $1.3 billion a year ago. Profit from selling mainstream, internal combustion vehicles fell to $96 million from $901 million. Profit from selling commercial trucks and related services declined to $1.3 billion from $3 billion last year.

Automobiles Company Reports Customs (Tariff) Donald J Electric and Hybrid Vehicles Fees and Rates) Ford Motor Co International Trade and World Market Prices (Fares Trump
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