Mon May 05 20:10:00 UTC 2025: **Ford Suspends 2025 Financial Guidance Due to Trump-Era Tariffs**
DETROIT – Ford Motor Company reported better-than-expected first-quarter earnings but announced it is suspending its 2025 financial guidance due to the anticipated $1.5 billion impact of President Trump’s tariffs on imported vehicles and auto parts. While the company initially projected a $2.5 billion hit, Ford expects to mitigate $1 billion through cost-cutting measures and adjustments to volume and pricing.
The automotive industry is facing 25% tariffs on imported vehicles and non-USMCA compliant auto parts. Ford’s revised projection is significantly lower than General Motors’ estimated $4 billion to $5 billion tariff impact, reflecting Ford’s lower reliance on imported vehicles.
Despite the tariff headwinds, Ford CFO Sherry House stated that the company’s Ford+ turnaround plan is progressing well. First-quarter revenue declined 5% year-over-year to $40.7 billion, with adjusted EBIT at $1.02 billion and net income of $471 million. These figures represent a decrease compared to the first quarter of 2024, which saw revenue of $42.8 billion and net income of $1.33 billion. Ford’s performance varied across divisions, with its Model e electric vehicle business showing significant improvement.
To mitigate tariff costs, Ford has implemented several strategies, including ceasing U.S. exports to China and adjusting China-made imports. These measures reduced the first-quarter tariff impact by 35%, approximately $200 million. The company cited near-term risks, including potential supply chain disruptions and the possibility of future tariff increases, as reasons for withdrawing its 2025 guidance. Without the tariff impact, Ford stated it was on track to meet its original guidance.
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