Automotive company Ford announced that it expects to incur losses of up to $2.5 billion this year due to President Donald Trump's implementation of new vehicle import taxes.
This trade policy uncertainty also prompted Ford to suspend its financial guidance for the full year of 2025, despite the company reporting an encouraging performance in its first-quarter financial report.
For the first quarter of 2025, Ford reported revenue of $40.7 billion with adjusted earnings per share (EPS) of $0.49 — far exceeding Wall Street expectations.
However, the company's operating profit (EBIT) fell 63% compared to the same period last year, largely due to an additional tax of almost $200 million that affected its Ford Blue (gasoline vehicles) and Ford Pro (commercial) units.
Despite the cost pressure, CEO Jim Farley remains optimistic. He noted that Ford's reliance on domestic production provides greater protection compared to competitors such as General Motors (GM).
Ford now expects a net negative impact on EBIT of $1.5 billion for the full year 2025 due to the tariffs.
Meanwhile, Ford's electric vehicle unit (Model e) still posted a large loss of $849 million in the first quarter.
While that number is still high, it is an improvement over the nearly $1.4 billion loss it recorded in the same period last year.
