Ford expects a $1.5 billion drop in 2025 adjusted earnings due to tariffs

Ford Motor suspended its full-year financial guidance, saying it anticipates President Donald Trump’s tariffs will cost $1.5 billion in net earnings in 2025.

Despite reporting a stronger-than-expected first-quarter profit, Ford withdrew its earlier forecast of up to $8.5 billion in adjusted earnings.

The company plans to offset $1 billion of the tariff impact through strategies like bonded transportation.

Ford’s exposure to tariffs is less than that of its competitors, as it produces 80% of its cars in the US. Despite challenges, Ford’s first-quarter adjusted profit surpassed analyst expectations.