Ford Motor suspended its annual guidance due to uncertainty surrounding Donald Trump’s tariffs. The levies will cost the company about $1.5 billion in adjusted earnings before interest and taxes.
Ford CEO Jim Farley told analysts on Monday evening, “It’s still too early to fully understand our competitors’ responses to these tariffs.” He added, “It’s clear, however, that in this new environment, automakers with the largest U.S. footprint will have a big advantage.”
Ford reported after the U.S. stock trading session closed. Its shares fell about 2.3% in after-hours trade.
The tariffs are expected to add $2.5 billion in costs overall for the year. These costs mainly relate to expenses from importing vehicles from Mexico and China, Ford executives said. The automaker suspended automotive exports to China. However, it still imports vehicles like its Lincoln Nautilus from the country.
Company executives said it has been able to reduce about $1 billion of that cost through various actions. They are transporting vehicles from Mexico to Canada using bond carriers, so they are not subject to U.S. tariffs.
In February, the Dearborn, Michigan automaker projected earnings before interest and taxes of $7.0 billion to $8.5 billion for 2025. That forecast did not take tariffs into account.
The automaker’s Chief Financial Officer Sherry House said it was on track to meet that guidance, excluding the fallout from tariffs.
Rivals such as General Motors recently provided updated guidance. Ford executives said they suspended the company’s outlook. They want more clarity about the effect of retaliatory tariffs, as well as how consumers may react to price increases.
Morningstar Research analyst David Whiston said, “It’s a bold move for them to withdraw guidance when GM gave revised guidance including tariffs, though to be fair things are very uncertain.”
Ford’s earnings per share fell to 14 cents in the first quarter. It surpassed LSEG analysts’ estimate of 2 cents per share but it decreased from 49 cents a year earlier. Cost and quality improvements helped Ford beat expectations, executives said.
Earlier this year, the automaker had warned that first-quarter results would be affected by production disruptions. These disruptions were related to product launches at several plants. Net income fell sharply to $471 million from $1.3 billion a year earlier.
Ford’s revenue fell 5% to $40.7 billion in the quarter. However, it beat expectations of about $36 billion. Earnings received a boost as consumers rushed to snatch up vehicles. They were concerned tariffs would lead to price hikes. Ford was one of a few automakers that ran incentives to grab market share during this buying frenzy.
Some estimates state that Trump’s 25% tariffs on automotive imports were expected to add more than $100 billion in costs for automakers in the U.S. this year.
The president approved a reprieve last month around levies placed on automotive parts. Auto companies receive credits for up to 15% of the value of vehicles assembled domestically, as well as relief from other duties.
This month, GM cut its profit forecast and said tariffs were expected to cost it up to $5 billion.
Barclays analysts said in a note, “Investors have preferred Ford over GM given Ford has a much higher mix of U.S. sales that are assembled in the U.S.,” citing Ford’s 79% of U.S. sales assembled in the country versus GM’s 53%.
Jeep-maker Stellantis also suspended its guidance due to tariff uncertainty.
Ford faces significant losses on its electric vehicles, in addition to headwinds from Trump’s trade policy.
The automaker this year projected losses of up to $5.5 billion on its EV and software operations. It has already sustained more than $10 billion in losses since 2023.
Reuters exclusively reported that Ford ended an expensive effort to build a next-generation electrical architecture for its vehicles. This architecture, called FNV4, was terminated after delays and mounting expenses stymied its development.
When asked about the report, Farley said the move is “a very significant save for capital efficiency.”
Ford Pro, the company’s profitable commercial vehicle segment, posted first-quarter revenue of $15.2 billion, down 16% from a year ago. Ford’s gasoline-engine division posted quarterly revenue of $21 billion. Its Model e division, which includes software and EV efforts, recorded revenue of $1.2 billion for the three months.
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