President Donald Trump opted to impose 25 percent tariffs on imported automobiles in early April, a move that impacts Ford a bit less than others – though it does sell four models in the U.S. that are built in other countries. Automakers did get a bit of a reprieve following some strong lobbying against 25 percent tariffs that were set to take effect this week on imported parts, which is something that Ford previously stated would add “billions” in costs. Now, Ford has revealed what sort of financial hit it expects to absorb as a result of existing tariffs.
In its Q1 2025 earnings report, Ford noted that its underlying business remains “strong,” as it’s tracking within the company’s previously adjusted earnings before interest and taxes (EBIT) guidance of between $7-$8.5 billion. However, that figure also excludes any new tariff-related impacts, some of which are a bit murky at the moment. Based on what it knows right now, Ford expects that it will suffer a net adverse adjusted EBIT impact of around $1.5 billion for the entirety of 2025 due to existing tariffs.
There are scenarios in which that number could swell, given the potential for an industrywide supply chain disruption that would impact production, as well as the possibility that tariffs may increase – or new ones may be implemented – as we move through the year, too. Ford believes that other substantial industry risks could emerge, ones pertaining to tax and emissions policies, which could have an impact on the company’s financials as well – as such, it’s suspending its full year guidance at this time, and will provide an update during its Q2 earnings call.
As Ford Authority reported last week, Blue Oval CEO Jim Farley has come out in support of Trump’s tariffs, touting the fact that Ford has a larger American footprint than most of its peers. However, he also believes that the automaker must partner with that administration in regard to policy changes moving forward, too. “We need to continue to work closely with the administration on a comprehensive set of policies to support our shared vision of that healthy and growing auto industry. And we are not there yet,” Farley said.
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