Ford Suspends Guidance, Details $1.5B Tariff Impact

Ford Motor Company suspended its full-year financial guidance due to significant uncertainty caused by President Trump’s 25% tariffs on imported vehicles and parts, estimating a net $1.5 billion hit and a total exposure of $2.5 billion to 2025 profits. In the first quarter, net income fell 64% year-over-year to $471 million and adjusted EBIT dropped 63% to $1 billion, with $200 million in tariff costs partly offset by logistical measures. Ford is less exposed to tariffs than General Motors, which faces $4–5 billion in extra costs. The Ford Pro commercial segment generated $1.3 billion in EBIT, and the Model e electric division narrowed losses. The company highlighted its strong balance sheet, with $27 billion in cash and $45 billion in liquidity, and expects only modest increases in US vehicle prices. Ongoing supply chain risks, potential retaliatory tariffs, and policy uncertainty were cited as reasons for withdrawing its annual forecast.