Ford Motor also reported a sharp drop in profits in the first three months of the year.The New York Times reports that Ford Motor has experienced a significant decrease in profits during the first quarter of the year. This decline has been attributed to the Trump administration’s tariff policies, which are expected to lower the company’s 2025 profit by approximately $1.5 billion. As a result, Ford has also revised its forecast for the year, citing the difficulty in predicting the future due to the constantly changing tariff policies.
Unlike other automakers, Ford is less affected by the 25 percent tariffs on vehicles imposed by President Trump, as most of the vehicles it sells in the United States are manufactured within the country. However, the company has still estimated that tariffs will cost them $2.5 billion, which includes measures they are taking to reduce costs such as purchasing more parts and producing more vehicles in the United States.
In comparison, General Motors stated last week that the tariffs would increase their costs by $4 billion to $5 billion this year, but they are hoping to make changes that will reduce this to no more than $3.5 billion. Ford’s chief financial officer, Sherry House, expressed confidence in the company’s ability to adapt to the changes brought about by the tariffs, stating that they are well positioned to do so.
Ford also highlighted the potential disruption to automotive supply chains and the possibility of retaliatory tariffs on U.S. exports by other nations as a result of the Trump administration’s shifting tariff policies. The company also noted the uncertainty surrounding the administration’s tax and emission policies, which led them to suspend their full-year guidance.
Previously, Ford had projected earnings of $7 billion to $8.5 billion for 2025, before interest and taxes. However, with the current tariff policies in place, the company has decided to suspend this forecast. The Trump administration has imposed 25 percent tariffs on imported vehicles and auto parts, as well as raised tariffs on imported steel and aluminum, which are extensively used in the automotive industry.
These tariffs signify a significant change in U.S. trade policy, particularly in regards to trade among the United States, Canada, and Mexico. For decades, cars and auto parts have been traded between these countries with little to no tariffs. Ford does have some production facilities in Mexico, including the Mustang Mach-E, but they have no plans to change their heavy-duty truck production in Canada.
In addition to the impact of tariffs, Ford also reported a decrease in profit for the first quarter of the year, from $1.3 billion to $471 million. This decline has been attributed to lower vehicle sales, as the company had paused production at some factories to prepare for new models and reduce inventories of unsold cars and trucks. Revenue for the quarter also decreased by 5 percent, to $40.7 billion.
Ford also noted that their losses on electric vehicles have decreased from $1.3 billion to $849 million, while profit from selling mainstream, internal combustion vehicles has decreased from $901 million to $96 million. Profit from selling commercial trucks and rel according to SEO standards has also decreased.
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