Ford has suspended its full-year financial forecast, citing a projected $1.5 billion hit to its 2025 adjusted earnings from President Donald Trump’s auto tariffs. The automaker said shifting trade policies and rising costs are creating uncertainty across its operations, prompting the move.
The company reported better-than-expected first-quarter earnings but warned that total tariff-related costs could reach $2.5 billion this year. According to Chief Financial Officer Sherry House, Ford expects to recover about $1 billion of that amount through bonded transportation and supply chain optimization.
Ford listed seven contributing factors in its decision to pull previous guidance, including potential industrywide supply chain disruptions and the possibility of future tariff increases. Its earlier forecast had projected as much as $8.5 billion in adjusted EBIT for the year. An updated financial outlook is expected with the company’s second-quarter earnings report.
Shares of Ford dropped 2.4% in after-hours trading Monday. Despite that decline, the stock is up 3.8% year-to-date, outperforming the broader S&P 500 Index, which is down 3.3% over the same period.
The Trump administration’s 25% tariffs on imported vehicles and parts are part of a broader effort to boost U.S. manufacturing and employment. However, automakers continue to warn that the tariffs are increasing operational costs, pressuring jobs, and contributing to higher vehicle prices, which are approaching a $50,000 average.
However, Ford received partial relief last week as the White House announced a phased-in approach for certain auto part tariffs and excluded automotive goods from additional steel and aluminum levies. Still, the company emphasized that the overall financial impact remains substantial. Ford also said it is evaluating ways to increase domestic parts production and is seeking clarification on sourcing rules related to U.S. content in vehicles built in Mexico.
Compared to its competitors, Ford is relatively less exposed to tariffs, with about 80% of its U.S. vehicle sales coming from domestically produced units. General Motors, by contrast, estimated a $5 billion tariff exposure and recently reduced production at a Canadian truck plant while shifting operations to Indiana.
Ford’s first-quarter performance varied across business units. Ford Blue, responsible for gas-powered and hybrid vehicles, reported $96 million in EBIT, down from $901 million a year earlier, due partly to launch costs for the updated Expedition and Lincoln Navigator. Ford Pro, the company’s commercial vehicle division, delivered $1.3 billion in EBIT, aligning with analyst expectations.
Overall, Ford’s adjusted earnings per share reached 14 cents for the quarter, outperforming analyst expectations of a 4-cent loss.
