Ford Motor Company announced that the Trump administration’s tariff policies are expected to reduce its 2025 profit, before interest and taxes, by approximately $1.5 billion. The company also withdrew its forecast for the year, stating that forecasting has become too uncertain. Ford is less impacted by President Trump’s 25% tariffs on vehicles compared to other automakers because most of its U.S.-sold vehicles are manufactured domestically. General Motors reported last week that tariffs would increase its costs by $4 billion to $5 billion this year. Ford’s CFO, Sherry House, mentioned during a conference call that the company is adapting to changes driven by tariffs. However, the shifting tariff policies could disrupt automotive supply chains and lead to retaliatory tariffs on U.S. exports. Additionally, uncertainty remains regarding the Trump administration’s tax and emission policies. Ford previously projected earnings for 2025, before interest and taxes, to be between $7 billion and $8.5 billion. The Trump administration has imposed 25% tariffs on imported vehicles and auto parts, as well as increased tariffs on steel and aluminum used in cars and trucks. These tariffs represent a significant shift in U.S. trade policy, particularly affecting trade among the U.S., Canada, and Mexico. Ford manufactures some vehicles in Mexico, including the Mustang Mach-E, and plans to start producing heavy-duty pickup trucks in Canada in 2026. Ms. House stated that the automaker is not considering altering its heavy-duty truck plans. Ford also reported a decline in profit for the first three months of the year to $471 million from $1.3 billion the previous year, attributing this to lower vehicle sales due to paused production at some factories preparing for new models and efforts to reduce unsold inventory.
— new from The New York Times
