Ford Pulls Outlook, Sees $1.5 Billion Hit From Trump Tariffs

Ford Mach-E EV vehicles at a Ford dealership in Richmond, California, US, on Monday, March 3, 2025. Tariffs on Canada and Mexico risk driving up US car prices by as much as $12,000, further squeezing consumers and wreaking havoc across the intricate web of automotive supply lines spanning the continent. Photo by David Paul Morris /Bloomberg

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(Bloomberg) — Ford Motor Co. suspended its full-year financial guidance and said President Donald Trump’s auto tariffs will take a toll on profit, joining rivals stung by volatile global trade policies. 

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The automaker expects the duties to reduce 2025 adjusted earnings before interest and taxes by about $1.5 billion on a net basis this year, it said while reporting a first-quarter profit that beat expectations. The company’s total tariff impact is about $2.5 billion, $1 billion of which the company expects to offset through actions such as using so-called bonded transportation to shield parts from levies as they cross international borders, Chief Financial Officer Sherry House told reporters. 

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Ford cited seven factors in withdrawing its earlier forecast for as much as $8.5 billion in adjusted Ebit this year, including potential “industrywide supply chain disruption” tied to Trump’s duties and the risk that levies may increase in the future.

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Ford’s shares fell 2.4% in after-hours trading on Monday. The stock had gained about 3.8% this year through Friday’s close, better than the 3.3% decline by the S&P 500 Index. The company plans to provide an updated outlook when it reports second-quarter earnings.

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Chief Executive Officer Jim Farley acknowledged how difficult it is to predict the tariffs’ ultimate impact on costs, especially when the Trump administration also is renegotiating trade deals, including the agreement between the US, Canada and Mexico.

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“It’s a pretty dynamic situation, I think this is all really new for all of us,” Farley said Monday during a call with analysts. “We should just all expect to be a little bit patient during this time to see how these policies kind of work out.”

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Ford is the latest automaker to point to the steep costs of Trump’s back-and-forth campaign to reshape global trade routes. Trump has said 25% tariffs imposed on imported vehicles and parts are needed to bring more production and jobs to the US. Automakers have warned that broad, lasting tariffs will increase costs, jeopardize employment and potentially increase new-car prices that are already nearing $50,000 on average. 

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Farley last week said the company won’t increase the price of its vehicles until it sees how rivals respond to added tariff costs.

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The $1.5 billion hit Ford now expects comes despite relief granted to automakers last week. Trump spared imports subject to the auto tariffs from paying additional levies targeting other goods, such as steel and aluminum. The White House also will phase in tariffs on auto parts over two years to give companies time to move production to the US.

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Ford said Monday it is looking for ways to build more parts in the US. But Farley said Ford has let the White House know the cost these changes will have on its business.

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“These are huge numbers,” Farley said of the $2.5 billion gross tariff hit Ford is taking. “We’ve been very clear with the government about the flexibility we need.”

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The White House actions announced last week were “really important steps forward,” House said on a call with reporters on Monday, noting that trade policy continues to be uncertain. Ford is also waiting to see if it can receive credit for the US content in vehicles it imports from Mexico, she said.