Newsletters
U.S. auto titan Ford Motor Company suspended its full-year 2025 financial guidance on Monday, citing an anticipated $1.5 billion hit from Trump tariffs, despite exceeding first-quarter expectations for both revenue and profit.
Ford said it expects “a tariff-related net adverse impact of about $1.5 billion on its adjusted earnings before interest and taxes (EBIT) for the full year 2025, subject to ongoing tariff-related policy developments.”
"Due to tariff-related uncertainty, the company is suspending financial guidance, including full-year adjusted EBIT and adjusted free cash flow,” the statement added.
A new 25% import tariff on engines, transmissions, and other key auto parts that do not comply with USMCA rules took effect in the U.S. on Saturday, intensifying pressure on an industry already contending with shifting policies and existing trade barriers.
To mitigate the impact, President Trump signed an executive order on April 29 introducing a 15% rebate for manufacturers that complete vehicle assembly in the U.S. The tariff is set to decrease to 10% after one year, aimed at encouraging supply chain reshoring. The rebate is available to all automakers with U.S.-based plants, regardless of their country of origin. Additionally, tariffs will not be cumulative—only the highest applicable rate will be charged per part. In a separate proclamation, Trump also authorized partial tariff reimbursements for vehicles undergoing final assembly in the U.S, effective for two years.
This measure coincides with an earlier 25% tariff imposed last month on imported vehicles.
In addition to concerns about possible retaliatory tariffs, Ford cited “near-term risks, especially the potential for industrywide supply chain disruption impacting production,” and the likelihood of future or higher duties in the U.S. as reasons for withdrawing its financial guidance.
Ford reported $40.7 billion in total sales for the first quarter, a 5% decline from the same period last year but still above market expectations.
The company posted $1.02 billion in adjusted EBIT and $471 million in net income.
Despite the tariff challenges, Ford said it remains on track to meet its original outlook, which included capital expenditures between $8 billion and $9 billion, adjusted free cash flow of $3.5 billion to $4.5 billion, and adjusted EBIT of $7 billion to $8.5 billion, excluding the tariff impact.
“We are strengthening our underlying business with significantly better quality and our third straight quarter of year-over-year cost improvement, excluding the impact of tariffs,” said Ford President and CEO Jim Farley.
TWEET: US automaker Ford suspends its 2025 financial guidance, citing an expected $1.5B hit from Trump's new auto tariffs
4 min read
