Ford Faces $1.5B Profit Hit From Tariffs, Ditches 2025 Forecast Amid Trade Turmoil

Ford Motor Company announced that it expects tariffs to cut $1.5 billion from its operating profit this year and has pulled its full-year financial forecast, citing unpredictability stemming from the Trump administration’s shifting trade policies, according to a report by Reuters

In its latest quarterly report released Monday, the automaker revealed that net income plunged nearly 67% year-over-year, falling to $473 million (12 cents per share) compared to $1.33 billion (33 cents per share) in the same period last year. Revenue also dipped 5% to $40.66 billion.

Despite the downturn, the results outperformed analyst estimates. Market watchers surveyed by FactSet had projected flat Earnings Per Share (EPS) and revenue of approximately $38.02 billion. Nonetheless, Ford shares dropped over 2% in after-hours trading.

Also Read: Ford Facing Economic Headwinds And Weak EV Sales, To Cut 4,000 Jobs In Europe | Republic World

The announcement comes on the heels of a similar warning from General Motors, which last week flagged a potential $5 billion impact from auto tariffs in 2025, according to Reuters report.

Ford and Tesla are anticipated to face less severe tariff consequences compared to GM and some other automakers, largely due to their greater reliance on domestic manufacturing. However, the financial strain from trade barriers remains a real concern.

Previously, Ford forecasted earnings before interest and taxes (EBIT) for 2025 in the range of $7 billion to $8.5 billion. On Monday, the company said it was no longer in a position to update its full-year guidance, given the wide range of possible outcomes resulting from trade uncertainty, according to Reuters.

CEO Jim Farley emphasized that Ford’s strong US manufacturing presence remains a competitive edge amid these developments, while also noting that the full effects of the tariffs have yet to unfold.

“It’s still too early to fully understand the market reaction and potential disruptions to the supply chain across the industry,” Farley told analysts during an earnings call. “Manufacturers with the largest U.S. presence stand to benefit the most, and Ford is clearly in that group. We’re in the pole position.”

President Donald Trump has maintained that a central objective of his trade agenda is to increase U.S.-based manufacturing, particularly in the automotive sector.